We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Should Value Investors Buy Par Pacific (PARR) Stock?
Read MoreHide Full Article
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.
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 stock to keep an eye on is Par Pacific (PARR - Free Report) . PARR is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 4.34, which compares to its industry's average of 6.12. Over the past year, PARR's Forward P/E has been as high as 30.94 and as low as 3.01, with a median of 8.51.
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 0.23. This compares to its industry's average P/S of 0.29.
Finally, investors should note that PARR has a P/CF ratio of 3.69. 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 4.33. Over the past year, PARR's P/CF has been as high as 5.86 and as low as -19.79, with a median of 3.56.
Another great Oil and Gas - Refining and Marketing stock you could consider is Valero Energy (VLO - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
Valero Energy is trading at a forward earnings multiple of 6.09 at the moment, with a PEG ratio of 1.01. This compares to its industry's average P/E of 6.12 and average PEG ratio of 0.61.
VLO's price-to-earnings ratio has been as high as 12.62 and as low as 4.41, with a median of 6.26, while its PEG ratio has been as high as 2.10 and as low as 0.73, with a median of 1.04, all within the past year.
Valero Energy sports a P/B ratio of 1.97 as well; this compares to its industry's price-to-book ratio of 1.28. In the past 52 weeks, VLO's P/B has been as high as 2.90, as low as 1.70, with a median of 2.
These are just a handful of the figures considered in Par Pacific 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 PARR and VLO is an impressive value stock right now.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Should Value Investors Buy Par Pacific (PARR) Stock?
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.
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 stock to keep an eye on is Par Pacific (PARR - Free Report) . PARR is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 4.34, which compares to its industry's average of 6.12. Over the past year, PARR's Forward P/E has been as high as 30.94 and as low as 3.01, with a median of 8.51.
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 0.23. This compares to its industry's average P/S of 0.29.
Finally, investors should note that PARR has a P/CF ratio of 3.69. 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 4.33. Over the past year, PARR's P/CF has been as high as 5.86 and as low as -19.79, with a median of 3.56.
Another great Oil and Gas - Refining and Marketing stock you could consider is Valero Energy (VLO - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
Valero Energy is trading at a forward earnings multiple of 6.09 at the moment, with a PEG ratio of 1.01. This compares to its industry's average P/E of 6.12 and average PEG ratio of 0.61.
VLO's price-to-earnings ratio has been as high as 12.62 and as low as 4.41, with a median of 6.26, while its PEG ratio has been as high as 2.10 and as low as 0.73, with a median of 1.04, all within the past year.
Valero Energy sports a P/B ratio of 1.97 as well; this compares to its industry's price-to-book ratio of 1.28. In the past 52 weeks, VLO's P/B has been as high as 2.90, as low as 1.70, with a median of 2.
These are just a handful of the figures considered in Par Pacific 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 PARR and VLO is an impressive value stock right now.