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Are Investors Undervaluing PBF Energy (PBF) Right Now?
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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
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.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company to watch right now is PBF Energy (PBF - Free Report) . PBF is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock has a Forward P/E ratio of 3.56. This compares to its industry's average Forward P/E of 4.88. 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 7.05.
Another valuation metric that we should highlight is PBF's P/B ratio of 1.29. The P/B ratio pits a stock's market value against 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 1.88. PBF's P/B has been as high as 2.09 and as low as 0.58, with a median of 0.97, 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 0.13. This compares to its industry's average P/S of 0.32.
Finally, we should also recognize that PBF has a P/CF ratio of 2.65. 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 4.62. PBF's P/CF has been as high as 7.13 and as low as 1.74, with a median of 3.86, all within the past year.
Phillips 66 (PSX - Free Report) may be another strong Oil and Gas - Refining and Marketing stock to add to your shortlist. PSX is a # 2 (Buy) stock with a Value grade of A.
Phillips 66 is trading at a forward earnings multiple of 7.59 at the moment, with a PEG ratio of 0.62. This compares to its industry's average P/E of 4.88 and average PEG ratio of 0.62.
PSX's price-to-earnings ratio has been as high as 19.08 and as low as 5.86, with a median of 10.34, while its PEG ratio has been as high as 2.40 and as low as 0.48, with a median of 0.64, all within the past year.
Additionally, Phillips 66 has a P/B ratio of 1.84 while its industry's price-to-book ratio sits at 1.88. For PSX, this valuation metric has been as high as 2.40, as low as 1.45, with a median of 1.72 over the past year.
These are just a handful of the figures considered in PBF Energy and Phillips 66'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 PSX is an impressive value stock right now.
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Are Investors Undervaluing PBF Energy (PBF) Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
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.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company to watch right now is PBF Energy (PBF - Free Report) . PBF is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock has a Forward P/E ratio of 3.56. This compares to its industry's average Forward P/E of 4.88. 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 7.05.
Another valuation metric that we should highlight is PBF's P/B ratio of 1.29. The P/B ratio pits a stock's market value against 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 1.88. PBF's P/B has been as high as 2.09 and as low as 0.58, with a median of 0.97, 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 0.13. This compares to its industry's average P/S of 0.32.
Finally, we should also recognize that PBF has a P/CF ratio of 2.65. 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 4.62. PBF's P/CF has been as high as 7.13 and as low as 1.74, with a median of 3.86, all within the past year.
Phillips 66 (PSX - Free Report) may be another strong Oil and Gas - Refining and Marketing stock to add to your shortlist. PSX is a # 2 (Buy) stock with a Value grade of A.
Phillips 66 is trading at a forward earnings multiple of 7.59 at the moment, with a PEG ratio of 0.62. This compares to its industry's average P/E of 4.88 and average PEG ratio of 0.62.
PSX's price-to-earnings ratio has been as high as 19.08 and as low as 5.86, with a median of 10.34, while its PEG ratio has been as high as 2.40 and as low as 0.48, with a median of 0.64, all within the past year.
Additionally, Phillips 66 has a P/B ratio of 1.84 while its industry's price-to-book ratio sits at 1.88. For PSX, this valuation metric has been as high as 2.40, as low as 1.45, with a median of 1.72 over the past year.
These are just a handful of the figures considered in PBF Energy and Phillips 66'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 PSX is an impressive value stock right now.