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REPYY or CVX: Which Is the Better Value Stock Right Now?

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Investors with an interest in Oil and Gas - Integrated - International stocks have likely encountered both Repsol SA (REPYY - Free Report) and Chevron (CVX - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.

There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Right now, Repsol SA is sporting a Zacks Rank of #1 (Strong Buy), while Chevron has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that REPYY is likely seeing its earnings outlook improve to a greater extent. But this is only part of the picture for value investors.

Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.

The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.

REPYY currently has a forward P/E ratio of 7.72, while CVX has a forward P/E of 18.25. We also note that REPYY has a PEG ratio of 0.20. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. CVX currently has a PEG ratio of 3.65.

Another notable valuation metric for REPYY is its P/B ratio of 0.71. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, CVX has a P/B of 1.49.

These are just a few of the metrics contributing to REPYY's Value grade of B and CVX's Value grade of C.

REPYY is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that REPYY is likely the superior value option right now.


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