Is PBF Energy (PBF) Stock Undervalued Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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 use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 stock to keep an eye on is PBF Energy (PBF). PBF is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 4.53. This compares to its industry's average Forward P/E of 5.61. Over the last 12 months, PBF's Forward P/E has been as high as 17.43 and as low as 1.56, with a median of 4.31.
Investors should also recognize that PBF has a P/B ratio of 1.13. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 2. Within the past 52 weeks, PBF's P/B has been as high as 2.09 and as low as 0.78, with a median of 1.07.
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. PBF has a P/S ratio of 0.11. This compares to its industry's average P/S of 0.28.
Finally, investors should note that PBF has a P/CF ratio of 1.95. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 4.27. Over the past year, PBF's P/CF has been as high as 7.13 and as low as 1.41, with a median of 2.08.
If you're looking for another solid Oil and Gas - Refining and Marketing value stock, take a look at Phillips 66 (PSX). PSX is a # 2 (Buy) stock with a Value score of A.
Phillips 66 is trading at a forward earnings multiple of 7.07 at the moment, with a PEG ratio of 0.36. This compares to its industry's average P/E of 5.61 and average PEG ratio of 0.56.
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PBF Energy Inc. (PBF) : Free Stock Analysis Report
Phillips 66 (PSX) : Free Stock Analysis Report
