We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
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 BP (BP - Free Report) . BP 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 12.36. This compares to its industry's average Forward P/E of 16.61. Over the last 12 months, BP's Forward P/E has been as high as 13.14 and as low as 6.94, with a median of 9.58.
Another notable valuation metric for BP is its P/B ratio of 1.13. The P/B ratio pits a stock's market value against 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 2.24. Over the past 12 months, BP's P/B has been as high as 1.22 and as low as 0.90, with a median of 1.07.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. BP has a P/S ratio of 0.62. This compares to its industry's average P/S of 1.03.
Finally, investors should note that BP has a P/CF ratio of 5.13. 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. BP's P/CF compares to its industry's average P/CF of 9.48. Within the past 12 months, BP's P/CF has been as high as 5.93 and as low as 3.57, with a median of 4.92.
If you're looking for another solid Oil and Gas - Integrated - International value stock, take a look at Eni (E - Free Report) . E is a Zacks Rank of #1 (Strong Buy) stock with a Value score of A.
Eni is currently trading with a Forward P/E ratio of 10.33 while its PEG ratio sits at 1.85. Both of the company's metrics compare favorably to its industry's average P/E of 16.61 and average PEG ratio of 0.83.
E's Forward P/E has been as high as 10.97 and as low as 6.79, with a median of 8.05. During the same time period, its PEG ratio has been as high as 1.89, as low as 1.23, with a median of 1.43.
Eni sports a P/B ratio of 0.97 as well; this compares to its industry's price-to-book ratio of 2.24. In the past 52 weeks, E's P/B has been as high as 1.00, as low as 0.70, with a median of 0.85.
These figures are just a handful of the metrics value investors tend to look at, but they help show that BP and Eni are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, BP and E feels like a great value stock at the moment.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
View the Zacks #1 Rank List
Image: Bigstock
Is BP (BP) Stock Undervalued Right Now?
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 BP (BP - Free Report) . BP 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 12.36. This compares to its industry's average Forward P/E of 16.61. Over the last 12 months, BP's Forward P/E has been as high as 13.14 and as low as 6.94, with a median of 9.58.
Another notable valuation metric for BP is its P/B ratio of 1.13. The P/B ratio pits a stock's market value against 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 2.24. Over the past 12 months, BP's P/B has been as high as 1.22 and as low as 0.90, with a median of 1.07.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. BP has a P/S ratio of 0.62. This compares to its industry's average P/S of 1.03.
Finally, investors should note that BP has a P/CF ratio of 5.13. 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. BP's P/CF compares to its industry's average P/CF of 9.48. Within the past 12 months, BP's P/CF has been as high as 5.93 and as low as 3.57, with a median of 4.92.
If you're looking for another solid Oil and Gas - Integrated - International value stock, take a look at Eni (E - Free Report) . E is a Zacks Rank of #1 (Strong Buy) stock with a Value score of A.
Eni is currently trading with a Forward P/E ratio of 10.33 while its PEG ratio sits at 1.85. Both of the company's metrics compare favorably to its industry's average P/E of 16.61 and average PEG ratio of 0.83.
E's Forward P/E has been as high as 10.97 and as low as 6.79, with a median of 8.05. During the same time period, its PEG ratio has been as high as 1.89, as low as 1.23, with a median of 1.43.
Eni sports a P/B ratio of 0.97 as well; this compares to its industry's price-to-book ratio of 2.24. In the past 52 weeks, E's P/B has been as high as 1.00, as low as 0.70, with a median of 0.85.
These figures are just a handful of the metrics value investors tend to look at, but they help show that BP and Eni are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, BP and E feels like a great value stock at the moment.