Yahoo Finance 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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 Par Pacific (PARR). PARR is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 7.87. This compares to its industry's average Forward P/E of 9.03. Over the last 12 months, PARR's Forward P/E has been as high as 9.74 and as low as 3.38, with a median of 7.07.
Another notable valuation metric for PARR is its P/B ratio of 1.46. 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 2.21. Over the past year, PARR's P/B has been as high as 2.46 and as low as 1.38, with a median of 1.79.
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 0.24. This compares to its industry's average P/S of 0.45.
Finally, investors will want to recognize that PARR has a P/CF ratio of 2.34. 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. PARR's P/CF compares to its industry's average P/CF of 6.04. Over the past 52 weeks, PARR's P/CF has been as high as 3.55 and as low as 1.50, with a median of 2.70.
Another great Oil and Gas - Refining and Marketing stock you could consider is Phillips 66 (PSX), which is a # 2 (Buy) stock with a Value Score of A.
Phillips 66 is currently trading with a Forward P/E ratio of 11.58 while its PEG ratio sits at 1.93. Both of the company's metrics compare favorably to its industry's average P/E of 9.03 and average PEG ratio of 2.81.
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
Par Pacific Holdings, Inc. (PARR) : Free Stock Analysis Report
Phillips 66 (PSX) : Free Stock Analysis Report
