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Is Delek US Holdings (DK) a Great Value Stock Right Now?

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

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 Delek US Holdings (DK - Free Report) . DK is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock holds a P/E ratio of 5.06, while its industry has an average P/E of 5.62. Over the last 12 months, DK's Forward P/E has been as high as 129.51 and as low as -120.80, with a median of 9.98.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. DK has a P/S ratio of 0.17. This compares to its industry's average P/S of 0.34.

Another great Oil and Gas - Refining and Marketing stock you could consider is PBF Energy (PBF - Free Report) , which is a # 1 (Strong Buy) stock with a Value Score of A.

PBF Energy sports a P/B ratio of 1.39 as well; this compares to its industry's price-to-book ratio of 1.83. In the past 52 weeks, PBF's P/B has been as high as 2.09, as low as 0.40, with a median of 0.81.

Value investors will likely look at more than just these metrics, but the above data helps show that Delek US Holdings and PBF Energy are likely undervalued currently. And when considering the strength of its earnings outlook, DK and PBF sticks out as one of the market's strongest value stocks.


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