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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.
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 use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on is BP (BP - Free Report) . BP is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 10.32. This compares to its industry's average Forward P/E of 10.75. BP's Forward P/E has been as high as 23.55 and as low as 10.32, with a median of 14.48, all within the past year.
We also note that BP holds a PEG ratio of 0.58. 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. BP's PEG compares to its industry's average PEG of 0.86. Within the past year, BP's PEG has been as high as 3.24 and as low as 0.43, with a median of 0.90.
Value investors also use the P/S ratio. The P/S ratio is 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. BP has a P/S ratio of 0.45. This compares to its industry's average P/S of 0.67.
Finally, we should also recognize that BP has a P/CF ratio of 5.64. 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. BP's P/CF compares to its industry's average P/CF of 5.83. BP's P/CF has been as high as 7.88 and as low as 5.64, with a median of 6.91, all within the past year.
These are only a few of the key metrics included in BP's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, BP looks like an impressive value stock at the moment.
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Is BP (BP) Stock Undervalued 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.
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 use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on is BP (BP - Free Report) . BP is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 10.32. This compares to its industry's average Forward P/E of 10.75. BP's Forward P/E has been as high as 23.55 and as low as 10.32, with a median of 14.48, all within the past year.
We also note that BP holds a PEG ratio of 0.58. 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. BP's PEG compares to its industry's average PEG of 0.86. Within the past year, BP's PEG has been as high as 3.24 and as low as 0.43, with a median of 0.90.
Value investors also use the P/S ratio. The P/S ratio is 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. BP has a P/S ratio of 0.45. This compares to its industry's average P/S of 0.67.
Finally, we should also recognize that BP has a P/CF ratio of 5.64. 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. BP's P/CF compares to its industry's average P/CF of 5.83. BP's P/CF has been as high as 7.88 and as low as 5.64, with a median of 6.91, all within the past year.
These are only a few of the key metrics included in BP's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, BP looks like an impressive value stock at the moment.