While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
Shell Oil is a stock many investors are watching right now. RDS.A is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock has a Forward P/E ratio of 8.71. This compares to its industry's average Forward P/E of 11.43. RDS.A's Forward P/E has been as high as 416.88 and as low as 8.58, with a median of 14.38, all within the past year.
We should also highlight that RDS.A has a P/B ratio of 0.95. 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 company's current P/B looks solid when compared to its industry's average P/B of 1.07. Within the past 52 weeks, RDS.A's P/B has been as high as 1.09 and as low as 0.56, with a median of 0.80.
Finally, our model also underscores that RDS.A has a P/CF ratio of 4.89. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 7.17. Within the past 12 months, RDS.A's P/CF has been as high as 5.61 and as low as 2.50, with a median of 3.44.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Shell Oil is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, RDS.A feels like a great value stock at the moment.
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Is Shell Oil (RDS.A) a Great Value Stock Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
Shell Oil is a stock many investors are watching right now. RDS.A is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock has a Forward P/E ratio of 8.71. This compares to its industry's average Forward P/E of 11.43. RDS.A's Forward P/E has been as high as 416.88 and as low as 8.58, with a median of 14.38, all within the past year.
We should also highlight that RDS.A has a P/B ratio of 0.95. 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 company's current P/B looks solid when compared to its industry's average P/B of 1.07. Within the past 52 weeks, RDS.A's P/B has been as high as 1.09 and as low as 0.56, with a median of 0.80.
Finally, our model also underscores that RDS.A has a P/CF ratio of 4.89. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 7.17. Within the past 12 months, RDS.A's P/CF has been as high as 5.61 and as low as 2.50, with a median of 3.44.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Shell Oil is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, RDS.A feels like a great value stock at the moment.