Investors looking for stocks in the Oil and Gas - Production Pipeline - MLB sector might want to consider either Valero Energy Partners or Shell Midstream . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, Valero Energy Partners is sporting a Zacks Rank of #2 (Buy), while Shell Midstream has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that VLP is likely seeing its earnings outlook improve to a greater extent. But this is only part of the picture for value investors.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
VLP currently has a forward P/E ratio of 14.10, while SHLX has a forward P/E of 18.98. We also note that VLP has a PEG ratio of 1.28. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. SHLX currently has a PEG ratio of 3.51.
Another notable valuation metric for VLP is its P/B ratio of 12.08. 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. By comparison, SHLX has a P/B of 12.89.
Based on these metrics and many more, VLP holds a Value grade of B, while SHLX has a Value grade of D.
VLP sticks out from SHLX in both our Zacks Rank and Style Scores models, so value investors will likely feel that VLP is the better option right now.
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VLP or SHLX: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Oil and Gas - Production Pipeline - MLB sector might want to consider either Valero Energy Partners or Shell Midstream . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, Valero Energy Partners is sporting a Zacks Rank of #2 (Buy), while Shell Midstream has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that VLP is likely seeing its earnings outlook improve to a greater extent. But this is only part of the picture for value investors.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
VLP currently has a forward P/E ratio of 14.10, while SHLX has a forward P/E of 18.98. We also note that VLP has a PEG ratio of 1.28. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. SHLX currently has a PEG ratio of 3.51.
Another notable valuation metric for VLP is its P/B ratio of 12.08. 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. By comparison, SHLX has a P/B of 12.89.
Based on these metrics and many more, VLP holds a Value grade of B, while SHLX has a Value grade of D.
VLP sticks out from SHLX in both our Zacks Rank and Style Scores models, so value investors will likely feel that VLP is the better option right now.