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Should Value Investors Buy OMV (OMVKY) Stock?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

OMV (OMVKY - Free Report) is a stock many investors are watching right now. OMVKY is currently sporting a Zacks Rank #1 (Strong Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 7.99 right now. For comparison, its industry sports an average P/E of 11.27. OMVKY's Forward P/E has been as high as 8.69 and as low as 5.63, with a median of 7.59, all within the past year.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. OMVKY has a P/S ratio of 0.79. This compares to its industry's average P/S of 1.

Repsol (REPYY - Free Report) may be another strong Oil and Gas - Integrated - International stock to add to your shortlist. REPYY is a Zacks Rank of #1 (Strong Buy) stock with a Value grade of A.

Repsol is trading at a forward earnings multiple of 5.56 at the moment, with a PEG ratio of 4.83. This compares to its industry's average P/E of 11.27 and average PEG ratio of 0.75.

REPYY's price-to-earnings ratio has been as high as 6.17 and as low as 4.00, with a median of 5.01, while its PEG ratio has been as high as 5.37 and as low as 1.21, with a median of 4.31, all within the past year.

Additionally, Repsol has a P/B ratio of 0.66 while its industry's price-to-book ratio sits at 2.12. For REPYY, this valuation metric has been as high as 0.68, as low as 0.41, with a median of 0.50 over the past year.

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

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