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Is YPF Sociedad Anonima (YPF) Stock Undervalued Right Now?

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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

YPF Sociedad Anonima (YPF - Free Report) is a stock many investors are watching right now. YPF is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 4.21, while its industry has an average P/E of 8.61. Over the past 52 weeks, YPF's Forward P/E has been as high as 4.48 and as low as 2.18, with a median of 3.37.

Another valuation metric that we should highlight is YPF's P/B ratio of 0.58. The P/B is a method of comparing a stock's market value to 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 1.18. YPF's P/B has been as high as 0.63 and as low as 0.34, with a median of 0.45, over the past year.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. YPF has a P/S ratio of 0.38. This compares to its industry's average P/S of 0.54.

Finally, we should also recognize that YPF has a P/CF ratio of 1.50. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 4.23. Within the past 12 months, YPF's P/CF has been as high as 1.62 and as low as 0.70, with a median of 1.01.

These figures are just a handful of the metrics value investors tend to look at, but they help show that YPF Sociedad Anonima is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, YPF feels like a great value stock at the moment.


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