Is Par Pacific (PARR) a Great Value Stock 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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 Par Pacific (PARR). PARR 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 7.63. This compares to its industry's average Forward P/E of 7.64. Over the last 12 months, PARR's Forward P/E has been as high as 10.32 and as low as 3.01, with a median of 5.38.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. PARR has a P/S ratio of 0.3. This compares to its industry's average P/S of 0.35.
Finally, we should also recognize that PARR has a P/CF ratio of 3.11. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. PARR's current P/CF looks attractive when compared to its industry's average P/CF of 5.11. Over the past 52 weeks, PARR's P/CF has been as high as 4.90 and as low as 1.50, with a median of 2.98.
If you're looking for another solid Oil and Gas - Refining and Marketing value stock, take a look at PBF Energy (PBF). PBF is a # 2 (Buy) stock with a Value score of A.
Additionally, PBF Energy has a P/B ratio of 1.10 while its industry's price-to-book ratio sits at 2.05. For PBF, this valuation metric has been as high as 1.24, as low as 0.75, with a median of 0.99 over the past year.
These are just a handful of the figures considered in Par Pacific and PBF Energy's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that PARR and PBF is an impressive value stock right now.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Par Pacific Holdings, Inc. (PARR) : Free Stock Analysis Report
PBF Energy Inc. (PBF) : Free Stock Analysis Report
