Back to top

Image: Bigstock

Should Value Investors Buy Oceaneering International (OII) 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.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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 Oceaneering International (OII - Free Report) . OII is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 13.81. This compares to its industry's average Forward P/E of 18.73. Over the last 12 months, OII's Forward P/E has been as high as 19.36 and as low as 8.77, with a median of 13.41.

Finally, investors will want to recognize that OII has a P/CF ratio of 8.17. 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. OII's current P/CF looks attractive when compared to its industry's average P/CF of 9.21. Over the past year, OII's P/CF has been as high as 13.09 and as low as 5.73, with a median of 8.26.

If you're looking for another solid Oil and Gas - Field Services value stock, take a look at Subsea 7 (SUBCY - Free Report) . SUBCY is a Zacks Rank of #1 (Strong Buy) stock with a Value score of A.

Subsea 7 also has a P/B ratio of 1.39 compared to its industry's price-to-book ratio of 2.24. Over the past year, its P/B ratio has been as high as 1.45, as low as 0.89, with a median of 1.15.

These are only a few of the key metrics included in Oceaneering International and Subsea 7 strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, OII and SUBCY look like an impressive value stock at the moment.


See More Zacks Research for These Tickers


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


Oceaneering International, Inc. (OII) - free report >>

Subsea 7 SA (SUBCY) - free report >>

Published in