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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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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 company value investors might notice is BP (BP - Free Report) . BP is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 4.22, while its industry has an average P/E of 5.75. Over the past year, BP's Forward P/E has been as high as 8.28 and as low as 3.94, with a median of 6.05.
Another valuation metric that we should highlight is BP's P/B ratio of 1.14. The P/B is a method of comparing a stock's market value to 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 1.32. Over the past year, BP's P/B has been as high as 1.42 and as low as 0.96, with a median of 1.13.
If you're looking for another solid Oil and Gas - Integrated - International value stock, take a look at Shell (SHEL - Free Report) . SHEL is a # 1 (Strong Buy) stock with a Value score of A.
Shell is trading at a forward earnings multiple of 4.72 at the moment, with a PEG ratio of 0.52. This compares to its industry's average P/E of 5.75 and average PEG ratio of 0.43.
Over the past year, SHEL's P/E has been as high as 9.46, as low as 4.40, with a median of 6.65; its PEG ratio has been as high as 2.37, as low as 0.48, with a median of 0.79 during the same time period.
Shell also has a P/B ratio of 0.99 compared to its industry's price-to-book ratio of 1.32. Over the past year, its P/B ratio has been as high as 1.31, as low as 0.91, with a median of 1.08.
These figures are just a handful of the metrics value investors tend to look at, but they help show that BP and Shell are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, BP and SHEL feels like a great value stock at the moment.
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Is BP (BP) Stock Undervalued Right Now?
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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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 company value investors might notice is BP (BP - Free Report) . BP is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 4.22, while its industry has an average P/E of 5.75. Over the past year, BP's Forward P/E has been as high as 8.28 and as low as 3.94, with a median of 6.05.
Another valuation metric that we should highlight is BP's P/B ratio of 1.14. The P/B is a method of comparing a stock's market value to 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 1.32. Over the past year, BP's P/B has been as high as 1.42 and as low as 0.96, with a median of 1.13.
If you're looking for another solid Oil and Gas - Integrated - International value stock, take a look at Shell (SHEL - Free Report) . SHEL is a # 1 (Strong Buy) stock with a Value score of A.
Shell is trading at a forward earnings multiple of 4.72 at the moment, with a PEG ratio of 0.52. This compares to its industry's average P/E of 5.75 and average PEG ratio of 0.43.
Over the past year, SHEL's P/E has been as high as 9.46, as low as 4.40, with a median of 6.65; its PEG ratio has been as high as 2.37, as low as 0.48, with a median of 0.79 during the same time period.
Shell also has a P/B ratio of 0.99 compared to its industry's price-to-book ratio of 1.32. Over the past year, its P/B ratio has been as high as 1.31, as low as 0.91, with a median of 1.08.
These figures are just a handful of the metrics value investors tend to look at, but they help show that BP and Shell are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, BP and SHEL feels like a great value stock at the moment.