Yahoo Finance Is CVR Energy (CVI) a Great Value Stock Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One stock to keep an eye on is CVR Energy (CVI). CVI is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. CVI has a P/S ratio of 0.35. This compares to its industry's average P/S of 0.4.
Finally, investors should note that CVI has a P/CF ratio of 3.11. 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. CVI's current P/CF looks attractive when compared to its industry's average P/CF of 6.06. Within the past 12 months, CVI's P/CF has been as high as 4.63 and as low as 2.74, with a median of 3.14.
Investors could also keep in mind Valero Energy (VLO), an Oil and Gas - Refining and Marketing stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Valero Energy is currently trading with a Forward P/E ratio of 9.78 while its PEG ratio sits at 1.63. Both of the company's metrics compare favorably to its industry's average P/E of 9.03 and average PEG ratio of 2.36.
VLO's price-to-earnings ratio has been as high as 11.79 and as low as 4.79, with a median of 7.58, while its PEG ratio has been as high as 1.96 and as low as 0.80, with a median of 1.26, all within the past year.
Additionally, Valero Energy has a P/B ratio of 1.93 while its industry's price-to-book ratio sits at 2.21. For VLO, this valuation metric has been as high as 2.12, as low as 1.39, with a median of 1.58 over the past year.
These are only a few of the key metrics included in CVR Energy and Valero Energy strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, CVI and VLO look like an impressive value stock at the moment.
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CVR Energy Inc. (CVI) : Free Stock Analysis Report
Valero Energy Corporation (VLO) : Free Stock Analysis Report
