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Is PBF Energy (PBF) a Great Value Stock Right Now?

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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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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.

One company value investors might notice is PBF Energy (PBF - Free Report) . PBF 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 7.79. This compares to its industry's average Forward P/E of 11.17. Over the past 52 weeks, PBF's Forward P/E has been as high as 48.60 and as low as -103.69, with a median of -4.93.

Investors should also recognize that PBF has a P/B ratio of 1.22. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. PBF's current P/B looks attractive when compared to its industry's average P/B of 1.55. PBF's P/B has been as high as 1.42 and as low as 0.40, with a median of 0.78, over the past year.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. PBF has a P/S ratio of 0.12. This compares to its industry's average P/S of 0.34.

Finally, investors should note that PBF has a P/CF ratio of 4.43. 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. This stock's P/CF looks attractive against its industry's average P/CF of 5.52. Within the past 12 months, PBF's P/CF has been as high as 10.48 and as low as -13.23, with a median of 4.29.

If you're looking for another solid Oil and Gas - Refining and Marketing value stock, take a look at Valero Energy (VLO - Free Report) . VLO is a # 2 (Buy) stock with a Value score of A.

Shares of Valero Energy are currently trading at a forward earnings multiple of 10.57 and a PEG ratio of 1.76 compared to its industry's P/E and PEG ratios of 11.17 and 0.87, respectively.

Over the last 12 months, VLO's P/E has been as high as 57.89, as low as 10.57, with a median of 16.71, and its PEG ratio has been as high as 12.91, as low as 1.76, with a median of 3.11.

Furthermore, Valero Energy holds a P/B ratio of 2.08 and its industry's price-to-book ratio is 1.55. VLO's P/B has been as high as 2.28, as low as 1.32, with a median of 1.69 over the past 12 months.

These are just a handful of the figures considered in PBF Energy and Valero Energy's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that PBF and VLO is an impressive value stock right now.


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