Back to top

Image: Bigstock

Should Value Investors Buy Repsol (REPYY) Stock?

Read MoreHide Full Article

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One stock to keep an eye on is Repsol (REPYY - Free Report) . REPYY is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 4.12. This compares to its industry's average Forward P/E of 8.70. REPYY's Forward P/E has been as high as 4.67 and as low as 3.75, with a median of 4.21, all within the past year.

Investors should also note that REPYY holds a PEG ratio of 0.48. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. REPYY's PEG compares to its industry's average PEG of 1.13. Within the past year, REPYY's PEG has been as high as 0.58 and as low as 0.43, with a median of 0.47.

Investors should also recognize that REPYY has a P/B ratio of 0.57. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 1.20. REPYY's P/B has been as high as 0.82 and as low as 0.56, with a median of 0.63, over the past year.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. REPYY has a P/S ratio of 0.29. This compares to its industry's average P/S of 0.55.

Finally, we should also recognize that REPYY has a P/CF ratio of 2.75. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 4.31. Within the past 12 months, REPYY's P/CF has been as high as 3.84 and as low as 2.70, with a median of 3.03.

Another great Oil and Gas - Integrated - International stock you could consider is YPF Sociedad Anonima (YPF - Free Report) , which is a # 1 (Strong Buy) stock with a Value Score of A.

YPF Sociedad Anonima also has a P/B ratio of 0.56 compared to its industry's price-to-book ratio of 1.20. Over the past year, its P/B ratio has been as high as 0.63, as low as 0.34, with a median of 0.45.

These are just a handful of the figures considered in Repsol and YPF Sociedad Anonima's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that REPYY and YPF is an impressive value stock right now.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


YPF Sociedad Anonima (YPF) - free report >>

Repsol SA (REPYY) - free report >>

Published in