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Are Investors Undervaluing YPF Sociedad Anonima (YPF) Right Now?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find 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 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 stock to keep an eye on is YPF Sociedad Anonima (YPF - Free Report) . YPF is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 9.65 right now. For comparison, its industry sports an average P/E of 11.52. Over the last 12 months, YPF's Forward P/E has been as high as 100.02 and as low as 6.98, with a median of 12.55.

Investors should also recognize that YPF has a P/B ratio of 0.53. 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 stock's P/B looks solid versus its industry's average P/B of 1.27. Over the past 12 months, YPF's P/B has been as high as 1.19 and as low as 0.45, with a median of 0.82.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's 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. YPF has a P/S ratio of 0.35. This compares to its industry's average P/S of 0.69.

These are only a few of the key metrics included in YPF Sociedad Anonima'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, YPF looks like an impressive value stock at the moment.


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