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Are Investors Undervaluing HF Sinclair (DINO) Right Now?
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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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 company value investors might notice is HF Sinclair (DINO - Free Report) . DINO is currently holding a Zacks Rank #2 (Buy) and a Value grade of A.
Another valuation metric that we should highlight is DINO's P/B ratio of 1.05. 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 company's current P/B looks solid when compared to its industry's average P/B of 2.84. Over the past 12 months, DINO's P/B has been as high as 1.06 and as low as 0.53, with a median of 0.76.
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. DINO has a P/S ratio of 0.52. This compares to its industry's average P/S of 0.61.
Phillips 66 (PSX - Free Report) may be another strong Oil and Gas - Refining and Marketing stock to add to your shortlist. PSX is a Zacks Rank of #2 (Buy) stock with a Value grade of A.
Phillips 66 is currently trading with a Forward P/E ratio of 14.17 while its PEG ratio sits at 1.08. Both of the company's metrics compare favorably to its industry's average P/E of 8.88 and average PEG ratio of 0.85.
Over the last 12 months, PSX's P/E has been as high as 19.40, as low as 11.40, with a median of 15.35, and its PEG ratio has been as high as 5.71, as low as 0.95, with a median of 3.39.
Phillips 66 also has a P/B ratio of 1.83 compared to its industry's price-to-book ratio of 2.84. Over the past year, its P/B ratio has been as high as 1.93, as low as 1.33, with a median of 1.78.
These figures are just a handful of the metrics value investors tend to look at, but they help show that HF Sinclair and Phillips 66 are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, DINO and PSX feels like a great value stock at the moment.
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Are Investors Undervaluing HF Sinclair (DINO) 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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 company value investors might notice is HF Sinclair (DINO - Free Report) . DINO is currently holding a Zacks Rank #2 (Buy) and a Value grade of A.
Another valuation metric that we should highlight is DINO's P/B ratio of 1.05. 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 company's current P/B looks solid when compared to its industry's average P/B of 2.84. Over the past 12 months, DINO's P/B has been as high as 1.06 and as low as 0.53, with a median of 0.76.
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. DINO has a P/S ratio of 0.52. This compares to its industry's average P/S of 0.61.
Phillips 66 (PSX - Free Report) may be another strong Oil and Gas - Refining and Marketing stock to add to your shortlist. PSX is a Zacks Rank of #2 (Buy) stock with a Value grade of A.
Phillips 66 is currently trading with a Forward P/E ratio of 14.17 while its PEG ratio sits at 1.08. Both of the company's metrics compare favorably to its industry's average P/E of 8.88 and average PEG ratio of 0.85.
Over the last 12 months, PSX's P/E has been as high as 19.40, as low as 11.40, with a median of 15.35, and its PEG ratio has been as high as 5.71, as low as 0.95, with a median of 3.39.
Phillips 66 also has a P/B ratio of 1.83 compared to its industry's price-to-book ratio of 2.84. Over the past year, its P/B ratio has been as high as 1.93, as low as 1.33, with a median of 1.78.
These figures are just a handful of the metrics value investors tend to look at, but they help show that HF Sinclair and Phillips 66 are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, DINO and PSX feels like a great value stock at the moment.