Should Value Investors Buy CVR Energy (CVI) Stock?
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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 CVR Energy (CVI). CVI is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade 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. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. CVI has a P/S ratio of 0.33. This compares to its industry's average P/S of 0.36.
Finally, investors will want to recognize that CVI has a P/CF ratio of 3.02. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 5.50. Over the past 52 weeks, CVI's P/CF has been as high as 6.55 and as low as 2.74, with a median of 4.15.
Investors could also keep in mind PBF Energy (PBF), an Oil and Gas - Refining and Marketing stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
PBF Energy also has a P/B ratio of 0.82 compared to its industry's price-to-book ratio of 1.92. Over the past year, its P/B ratio has been as high as 1.24, as low as 0.75, with a median of 0.97.
These figures are just a handful of the metrics value investors tend to look at, but they help show that CVR Energy and PBF Energy are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CVI and PBF feels like a great value stock at the moment.
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CVR Energy Inc. (CVI) : Free Stock Analysis Report
PBF Energy Inc. (PBF) : Free Stock Analysis Report
