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.
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.
Sprague Resources is a stock many investors are watching right now. SRLP is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 9.02, while its industry has an average P/E of 19.98. Over the last 12 months, SRLP's Forward P/E has been as high as 47.37 and as low as 7.63, with a median of 11.03.
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 prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. SRLP has a P/S ratio of 0.1. This compares to its industry's average P/S of 0.26.
Finally, our model also underscores that SRLP has a P/CF ratio of 3.95. 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 9.68. Over the past year, SRLP's P/CF has been as high as 5.90 and as low as 3.50, with a median of 4.57.
Value investors will likely look at more than just these metrics, but the above data helps show that Sprague Resources is likely undervalued currently. And when considering the strength of its earnings outlook, SRLP sticks out at as one of the market's strongest value stocks.
Image: Bigstock
Should Value Investors Buy Sprague Resources (SRLP) Stock?
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.
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.
Sprague Resources is a stock many investors are watching right now. SRLP is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 9.02, while its industry has an average P/E of 19.98. Over the last 12 months, SRLP's Forward P/E has been as high as 47.37 and as low as 7.63, with a median of 11.03.
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 prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. SRLP has a P/S ratio of 0.1. This compares to its industry's average P/S of 0.26.
Finally, our model also underscores that SRLP has a P/CF ratio of 3.95. 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 9.68. Over the past year, SRLP's P/CF has been as high as 5.90 and as low as 3.50, with a median of 4.57.
Value investors will likely look at more than just these metrics, but the above data helps show that Sprague Resources is likely undervalued currently. And when considering the strength of its earnings outlook, SRLP sticks out at as one of the market's strongest value stocks.