UK Markets closed
  • FTSE 100

    7,208.81
    +188.36 (+2.68%)
     
  • FTSE 250

    19,123.71
    +430.73 (+2.30%)
     
  • AIM

    896.27
    +10.41 (+1.18%)
     
  • GBP/EUR

    1.1618
    -0.0028 (-0.24%)
     
  • GBP/USD

    1.2270
    +0.0009 (+0.0736%)
     
  • BTC-GBP

    17,197.50
    +7.13 (+0.04%)
     
  • CMC Crypto 200

    462.12
    +8.22 (+1.81%)
     
  • S&P 500

    3,911.74
    +116.01 (+3.06%)
     
  • DOW

    31,500.68
    +823.32 (+2.68%)
     
  • CRUDE OIL

    107.06
    +2.79 (+2.68%)
     
  • GOLD FUTURES

    1,828.10
    -1.70 (-0.09%)
     
  • NIKKEI 225

    26,491.97
    +320.72 (+1.23%)
     
  • HANG SENG

    21,719.06
    +445.19 (+2.09%)
     
  • DAX

    13,118.13
    +205.54 (+1.59%)
     
  • CAC 40

    6,073.35
    +190.02 (+3.23%)
     

Should Value Investors Buy These Oils-Energy Stocks?

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
·3-min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

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.

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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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.

Gazprom Neft (GZPFY) is a stock many investors are watching right now. GZPFY is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value.

Investors should also recognize that GZPFY has a P/B ratio of 1.04. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 1.06. Within the past 52 weeks, GZPFY's P/B has been as high as 1.09 and as low as 0.63, with a median of 0.77.

Finally, our model also underscores that GZPFY has a P/CF ratio of 4.49. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 6.66. Over the past year, GZPFY's P/CF has been as high as 5.25 and as low as 3.52, with a median of 4.27.

Investors could also keep in mind OMV (OMVJF), an Oil and Gas - Integrated - International stock with a Zacks Rank of # 1 (Strong Buy) and Value grade of A.

OMV is trading at a forward earnings multiple of 5.48 at the moment, with a PEG ratio of 0.92. This compares to its industry's average P/E of 8.07 and average PEG ratio of 0.56.

Furthermore, OMV holds a P/B ratio of 0.74 and its industry's price-to-book ratio is 1.06. OMVJF's P/B has been as high as 0.81, as low as 0.52, with a median of 0.71 over the past 12 months.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Gazprom Neft and OMV are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, GZPFY and OMVJF feels like a great value stock at the moment.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Gazprom Neft OAO (GZPFY) : Free Stock Analysis Report
 
OMV AG (OMVJF) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting