Are Investors Undervaluing Par Pacific (PARR) Right Now?
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.
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 company to watch right now is Par Pacific (PARR). PARR is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock is trading with P/E ratio of 4.28 right now. For comparison, its industry sports an average P/E of 5.53. PARR's Forward P/E has been as high as 37.99 and as low as 3.01, with a median of 8.79, all within the past year.
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. PARR has a P/S ratio of 0.23. This compares to its industry's average P/S of 0.28.
Finally, we should also recognize that PARR has a P/CF ratio of 3.57. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 4.07. Over the past 52 weeks, PARR's P/CF has been as high as 59.36 and as low as -19.79, with a median of 3.52.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Par Pacific is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, PARR feels like a great value stock at the moment.
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Par Pacific Holdings, Inc. (PARR) : Free Stock Analysis Report
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