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Are Investors Undervaluing OMV (OMVKY) Right Now?

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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.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One stock to keep an eye on is OMV (OMVKY - Free Report) . OMVKY is currently sporting a Zacks Rank #1 (Strong Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 7.99. This compares to its industry's average Forward P/E of 12.91. Over the last 12 months, OMVKY's Forward P/E has been as high as 8.69 and as low as 5.63, with a median of 7.59.

We also note that OMVKY holds a PEG ratio of 1.41. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. OMVKY's PEG compares to its industry's average PEG of 1.68. Over the last 12 months, OMVKY's PEG has been as high as 1.53 and as low as 0.75, with a median of 1.20.

Another valuation metric that we should highlight is OMVKY's P/B ratio of 0.67. 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 solid versus its industry's average P/B of 1.93. Over the past year, OMVKY's P/B has been as high as 0.73 and as low as 0.47, with a median of 0.65.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. OMVKY has a P/S ratio of 0.62. This compares to its industry's average P/S of 0.77.

These are just a handful of the figures considered in OMV'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 OMVKY is an impressive value stock right now.


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