Back to top

Image: Bigstock

Is Repsol (REPYY) Stock Undervalued Right Now?

Read MoreHide Full Article

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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 Repsol (REPYY - Free Report) . REPYY is currently sporting a Zacks Rank #1 (Strong Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 5.56, which compares to its industry's average of 9.74. Over the past 52 weeks, REPYY's Forward P/E has been as high as 6.17 and as low as 4.00, with a median of 5.01.

Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by 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. REPYY has a P/S ratio of 0.44. This compares to its industry's average P/S of 0.95.

Finally, our model also underscores that REPYY has a P/CF ratio of 5.47. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 8.60. Within the past 12 months, REPYY's P/CF has been as high as 5.69 and as low as 2.06, with a median of 3.09.

Investors could also keep in mind Vista Energy, S.A.B. de C.V. - Sponsored ADR (VIST - Free Report) , another Oil and Gas - Integrated - International stock with a Zacks Rank of #1 (Strong Buy) and Value grade of A.

Shares of Vista Energy, S.A.B. de C.V. - Sponsored ADR are currently trading at a forward earnings multiple of 5.57 and a PEG ratio of 1.52 compared to its industry's P/E and PEG ratios of 9.74 and 0.65, respectively.

Over the past year, VIST's P/E has been as high as 9.23, as low as 5.14, with a median of 7.04; its PEG ratio has been as high as 1.56, as low as 0.29, with a median of 0.69 during the same time period.

Vista Energy, S.A.B. de C.V. - Sponsored ADR also has a P/B ratio of 1.51 compared to its industry's price-to-book ratio of 2.05. Over the past year, its P/B ratio has been as high as 3.66, as low as 1.51, with a median of 2.91.

These are only a few of the key metrics included in Repsol and Vista Energy, S.A.B. de C.V. - Sponsored ADR strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, REPYY and VIST look like an impressive 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.

Click Here, It's Really Free

Published in