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Is BP (BP) a Great Value Stock 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.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. 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 company value investors might notice is BP (BP - Free Report) . BP is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 7.60 right now. For comparison, its industry sports an average P/E of 9.51. Over the last 12 months, BP's Forward P/E has been as high as 7.82 and as low as 5.27, with a median of 6.64.

We should also highlight that BP has a P/B ratio of 1.30. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 1.52. Within the past 52 weeks, BP's P/B has been as high as 1.36 and as low as 1.13, with a median of 1.22.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's 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. BP has a P/S ratio of 0.52. This compares to its industry's average P/S of 0.65.

Finally, investors will want to recognize that BP has a P/CF ratio of 3.65. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. BP's P/CF compares to its industry's average P/CF of 5.46. Over the past year, BP's P/CF has been as high as 3.66 and as low as 2.46, with a median of 3.18.

Eni (E - Free Report) may be another strong Oil and Gas - Integrated - International stock to add to your shortlist. E is a # 1 (Strong Buy) stock with a Value grade of A.

Shares of Eni are currently trading at a forward earnings multiple of 6.97 and a PEG ratio of 1.10 compared to its industry's P/E and PEG ratios of 9.51 and 2.13, respectively.

Over the last 12 months, E's P/E has been as high as 7.53, as low as 4.44, with a median of 6.71, and its PEG ratio has been as high as 1.13, as low as 1.10, with a median of 1.10.

Furthermore, Eni holds a P/B ratio of 0.93 and its industry's price-to-book ratio is 1.52. E's P/B has been as high as 0.99, as low as 0.80, with a median of 0.91 over the past 12 months.

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


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