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Should Value Investors Buy OMV (OMVKY) 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.

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 OMV (OMVKY - Free Report) . OMVKY is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 7.99, while its industry has an average P/E of 12.60. Over the past year, OMVKY's Forward P/E has been as high as 8.69 and as low as 5.63, with a median of 7.59.

Investors will also notice that OMVKY has a PEG ratio of 1.41. 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. OMVKY's PEG compares to its industry's average PEG of 1.41. OMVKY's PEG has been as high as 1.53 and as low as 0.75, with a median of 1.20, all within the past year.

Investors should also recognize that OMVKY has a P/B ratio of 0.67. Investors use the P/B ratio to look at a stock's market value versus 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 1.45. Over the past 12 months, 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 0.61. This compares to its industry's average P/S of 0.77.

These are only a few of the key metrics included in OMV's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, OMVKY looks like an impressive value stock at the moment.


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