Are These Oils-Energy Stocks a Great Value Stocks 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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company value investors might notice is Central Puerto (CEPU). CEPU is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value.
Another valuation metric that we should highlight is CEPU's P/B ratio of 0.45. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 1.25. Over the past year, CEPU's P/B has been as high as 0.54 and as low as 0.27, with a median of 0.37.
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 popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. CEPU has a P/S ratio of 1.02. This compares to its industry's average P/S of 2.86.
Finally, investors will want to recognize that CEPU has a P/CF ratio of 4.64. 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. CEPU's P/CF compares to its industry's average P/CF of 6.70. Over the past year, CEPU's P/CF has been as high as 5.66 and as low as 1.64, with a median of 3.62.
Another great Alternative Energy - Other stock you could consider is Equinor (EQNR), which is a # 2 (Buy) stock with a Value Score of A.
Shares of Equinor currently holds a Forward P/E ratio of 8.47, and its PEG ratio is 0.17. In comparison, its industry sports average P/E and PEG ratios of 8.77 and 0.29.
EQNR's price-to-earnings ratio has been as high as 13.69 and as low as 7.17, with a median of 8.62, while its PEG ratio has been as high as 2.76 and as low as 0.14, with a median of 0.18, all within the past year.
Equinor also has a P/B ratio of 2.66 compared to its industry's price-to-book ratio of 1.25. Over the past year, its P/B ratio has been as high as 2.66, as low as 1.66, with a median of 1.98.
These are only a few of the key metrics included in Central Puerto and Equinor strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, CEPU and EQNR look like an impressive value stock at the moment.
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