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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.
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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.
One company to watch right now is Shell (SHEL - Free Report) . SHEL is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A.
Investors should also recognize that SHEL has a P/B ratio of 1.14. The P/B is a method of comparing a stock's market value to 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 2.15. SHEL's P/B has been as high as 1.24 and as low as 0.99, with a median of 1.12, over the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. SHEL has a P/S ratio of 0.86. This compares to its industry's average P/S of 0.92.
Finally, investors will want to recognize that SHEL has a P/CF ratio of 5.43. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 7.43. SHEL's P/CF has been as high as 5.67 and as low as 4.14, with a median of 4.86, all within the past year.
Investors could also keep in mind YPF Sociedad Anonima (YPF - Free Report) , another Oil and Gas - Integrated - International stock with a Zacks Rank of #1 (Strong Buy) and Value grade of A.
Shares of YPF Sociedad Anonima currently hold a Forward P/E ratio of 8.15, and its PEG ratio is 0.20. In comparison, its industry sports average P/E and PEG ratios of 8.97 and 0.59.
Over the past year, YPF's P/E has been as high as 12.74, as low as 4.36, with a median of 8.07; its PEG ratio has been as high as 0.31, as low as 0.10, with a median of 0.19 during the same time period.
Additionally, YPF Sociedad Anonima has a P/B ratio of 0.79 while its industry's price-to-book ratio sits at 2.15. For YPF, this valuation metric has been as high as 1.53, as low as 0.69, with a median of 1.11 over the past year.
These are just a handful of the figures considered in Shell and YPF Sociedad Anonima'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 SHEL and YPF is an impressive value stock right now.
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Is Shell (SHEL) Stock Undervalued Right Now?
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.
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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.
One company to watch right now is Shell (SHEL - Free Report) . SHEL is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A.
Investors should also recognize that SHEL has a P/B ratio of 1.14. The P/B is a method of comparing a stock's market value to 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 2.15. SHEL's P/B has been as high as 1.24 and as low as 0.99, with a median of 1.12, over the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. SHEL has a P/S ratio of 0.86. This compares to its industry's average P/S of 0.92.
Finally, investors will want to recognize that SHEL has a P/CF ratio of 5.43. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 7.43. SHEL's P/CF has been as high as 5.67 and as low as 4.14, with a median of 4.86, all within the past year.
Investors could also keep in mind YPF Sociedad Anonima (YPF - Free Report) , another Oil and Gas - Integrated - International stock with a Zacks Rank of #1 (Strong Buy) and Value grade of A.
Shares of YPF Sociedad Anonima currently hold a Forward P/E ratio of 8.15, and its PEG ratio is 0.20. In comparison, its industry sports average P/E and PEG ratios of 8.97 and 0.59.
Over the past year, YPF's P/E has been as high as 12.74, as low as 4.36, with a median of 8.07; its PEG ratio has been as high as 0.31, as low as 0.10, with a median of 0.19 during the same time period.
Additionally, YPF Sociedad Anonima has a P/B ratio of 0.79 while its industry's price-to-book ratio sits at 2.15. For YPF, this valuation metric has been as high as 1.53, as low as 0.69, with a median of 1.11 over the past year.
These are just a handful of the figures considered in Shell and YPF Sociedad Anonima'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 SHEL and YPF is an impressive value stock right now.