Is Par Pacific (PARR) Stock Undervalued Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore 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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest 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.
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. PARR has a P/S ratio of 0.21. This compares to its industry's average P/S of 0.33.
Finally, our model also underscores that PARR has a P/CF ratio of 3.60. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. PARR's P/CF compares to its industry's average P/CF of 5.16. Over the past year, PARR's P/CF has been as high as 81.73 and as low as -19.79, with a median of 3.63.
Another great Oil and Gas - Refining and Marketing stock you could consider is Valero Energy (VLO), which is a # 2 (Buy) stock with a Value Score of A.
Valero Energy is currently trading with a Forward P/E ratio of 6.37 while its PEG ratio sits at 1.06. Both of the company's metrics compare favorably to its industry's average P/E of 5.46 and average PEG ratio of 0.68.
VLO's Forward P/E has been as high as 57.89 and as low as 4.79, with a median of 10.80. During the same time period, its PEG ratio has been as high as 12.91, as low as 0.80, with a median of 1.80.
Additionally, Valero Energy has a P/B ratio of 2.09 while its industry's price-to-book ratio sits at 1.98. For VLO, this valuation metric has been as high as 2.90, as low as 1.47, with a median of 1.87 over the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Par Pacific and Valero Energy are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, PARR and VLO feels like a great value stock at the moment.
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Par Pacific Holdings, Inc. (PARR) : Free Stock Analysis Report
Valero Energy Corporation (VLO) : Free Stock Analysis Report
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