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Should Value Investors Buy Par Pacific (PARR) Stock?
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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 use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One stock to keep an eye on is Par Pacific (PARR - Free Report) . PARR is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock is trading with a P/E ratio of 4.76, which compares to its industry's average of 5.96. Over the past year, PARR's Forward P/E has been as high as 44.68 and as low as 3.01, with a median of 8.95.
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. PARR has a P/S ratio of 0.25. This compares to its industry's average P/S of 0.31.
Finally, we should also recognize that PARR has a P/CF ratio of 3.80. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. PARR's current P/CF looks attractive when compared to its industry's average P/CF of 4.54. PARR's P/CF has been as high as 62.50 and as low as -19.79, with a median of 3.56, all within the past year.
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 # 1 (Strong Buy) stock with a Value score of A.
Shares of Valero Energy currently holds a Forward P/E ratio of 6.17, and its PEG ratio is 1.03. In comparison, its industry sports average P/E and PEG ratios of 5.96 and 0.59.
VLO's Forward P/E has been as high as 12.62 and as low as 4.41, with a median of 6.42. During the same time period, its PEG ratio has been as high as 2.10, as low as 0.73, with a median of 1.07.
Furthermore, Valero Energy holds a P/B ratio of 2.11 and its industry's price-to-book ratio is 1.95. VLO's P/B has been as high as 2.90, as low as 1.66, with a median of 2.03 over the past 12 months.
Value investors will likely look at more than just these metrics, but the above data helps show that Par Pacific and Valero Energy are likely undervalued currently. And when considering the strength of its earnings outlook, PARR and VLO sticks out as one of the market's strongest value stocks.
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Should Value Investors Buy Par Pacific (PARR) Stock?
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 use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One stock to keep an eye on is Par Pacific (PARR - Free Report) . PARR is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock is trading with a P/E ratio of 4.76, which compares to its industry's average of 5.96. Over the past year, PARR's Forward P/E has been as high as 44.68 and as low as 3.01, with a median of 8.95.
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. PARR has a P/S ratio of 0.25. This compares to its industry's average P/S of 0.31.
Finally, we should also recognize that PARR has a P/CF ratio of 3.80. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. PARR's current P/CF looks attractive when compared to its industry's average P/CF of 4.54. PARR's P/CF has been as high as 62.50 and as low as -19.79, with a median of 3.56, all within the past year.
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 # 1 (Strong Buy) stock with a Value score of A.
Shares of Valero Energy currently holds a Forward P/E ratio of 6.17, and its PEG ratio is 1.03. In comparison, its industry sports average P/E and PEG ratios of 5.96 and 0.59.
VLO's Forward P/E has been as high as 12.62 and as low as 4.41, with a median of 6.42. During the same time period, its PEG ratio has been as high as 2.10, as low as 0.73, with a median of 1.07.
Furthermore, Valero Energy holds a P/B ratio of 2.11 and its industry's price-to-book ratio is 1.95. VLO's P/B has been as high as 2.90, as low as 1.66, with a median of 2.03 over the past 12 months.
Value investors will likely look at more than just these metrics, but the above data helps show that Par Pacific and Valero Energy are likely undervalued currently. And when considering the strength of its earnings outlook, PARR and VLO sticks out as one of the market's strongest value stocks.