Yahoo Finance Is PBF Energy (PBF) Stock Undervalued Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find 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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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.
One company value investors might notice is PBF Energy (PBF). PBF is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 8.49, while its industry has an average P/E of 9.03. Over the past 52 weeks, PBF's Forward P/E has been as high as 10.80 and as low as 3.31, with a median of 5.96.
Another valuation metric that we should highlight is PBF's P/B ratio of 1.04. Investors use the P/B ratio to look at a stock's market value versus 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 2.22. Over the past 12 months, PBF's P/B has been as high as 1.12 and as low as 0.72, with a median of 0.88.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's 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. PBF has a P/S ratio of 0.18. This compares to its industry's average P/S of 0.43.
Finally, we should also recognize that PBF has a P/CF ratio of 2.56. 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. PBF's current P/CF looks attractive when compared to its industry's average P/CF of 6.06. Over the past year, PBF's P/CF has been as high as 2.77 and as low as 1.10, with a median of 1.74.
These are only a few of the key metrics included in PBF Energy's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, PBF looks like an impressive value stock at the moment.
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PBF Energy Inc. (PBF) : Free Stock Analysis Report
