Back to top

Image: Bigstock

Is Adams Resources & Energy (AE) Stock Undervalued Right Now?

Read MoreHide Full Article

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 use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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 to watch right now is Adams Resources & Energy (AE - Free Report) . AE is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.

Another valuation metric that we should highlight is AE's P/B ratio of 0.77. 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. AE's current P/B looks attractive when compared to its industry's average P/B of 2.08. AE's P/B has been as high as 1.03 and as low as 0.64, with a median of 0.83, over the past year.

Finally, we should also recognize that AE has a P/CF ratio of 2.49. 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. This stock's P/CF looks attractive against its industry's average P/CF of 6.08. Over the past year, AE's P/CF has been as high as 4.64 and as low as 2.13, with a median of 3.40.

If you're looking for another solid Oil and Gas - Refining and Marketing value stock, take a look at Marathon Petroleum (MPC - Free Report) . MPC is a # 1 (Strong Buy) stock with a Value score of A.

Marathon Petroleum is trading at a forward earnings multiple of 9.57 at the moment, with a PEG ratio of 1.59. This compares to its industry's average P/E of 8.82 and average PEG ratio of 2.45.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Marathon Petroleum Corporation (MPC) - free report >>

Adams Resources & Energy, Inc. (AE) - free report >>

Published in