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Should Value Investors Buy CVR Energy (CVI) Stock?
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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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.
One company to watch right now is CVR Energy (CVI - Free Report) . CVI is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. CVI has a P/S ratio of 0.41. This compares to its industry's average P/S of 0.49.
Finally, we should also recognize that CVI has a P/CF ratio of 3.53. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. CVI's current P/CF looks attractive when compared to its industry's average P/CF of 6.32. Over the past 52 weeks, CVI's P/CF has been as high as 4.63 and as low as 2.74, with a median of 3.15.
Investors could also keep in mind PBF Energy (PBF - Free Report) , an Oil and Gas - Refining and Marketing stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
PBF Energy sports a P/B ratio of 1.11 as well; this compares to its industry's price-to-book ratio of 2.31. In the past 52 weeks, PBF's P/B has been as high as 1.11, as low as 0.72, with a median of 0.88.
These are just a handful of the figures considered in CVR Energy and PBF Energy'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 CVI and PBF is an impressive value stock right now.
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Should Value Investors Buy CVR Energy (CVI) Stock?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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.
One company to watch right now is CVR Energy (CVI - Free Report) . CVI is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. CVI has a P/S ratio of 0.41. This compares to its industry's average P/S of 0.49.
Finally, we should also recognize that CVI has a P/CF ratio of 3.53. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. CVI's current P/CF looks attractive when compared to its industry's average P/CF of 6.32. Over the past 52 weeks, CVI's P/CF has been as high as 4.63 and as low as 2.74, with a median of 3.15.
Investors could also keep in mind PBF Energy (PBF - Free Report) , an Oil and Gas - Refining and Marketing stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
PBF Energy sports a P/B ratio of 1.11 as well; this compares to its industry's price-to-book ratio of 2.31. In the past 52 weeks, PBF's P/B has been as high as 1.11, as low as 0.72, with a median of 0.88.
These are just a handful of the figures considered in CVR Energy and PBF Energy'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 CVI and PBF is an impressive value stock right now.