Yahoo Finance Why This 1 Value Stock Could Be a Great Addition to Your Portfolio
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors.
Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.
Why Investors Should Pay Attention to This Value Stock
Value investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, and Price/Cash Flow, the Value Style Score identifies the most attractive and most discounted stocks.
Imperial Oil (IMO)
Founded in 1880, Calgary-based Imperial Oil Limited is one of the largest integrated oil companies of Canada, mainly engaged in the oil and gas production, petroleum products refining and marketing and chemical business. It is Canada’s largest jet fuel supplier and a major producer of asphalt. Notably, Imperial Oil is the subsidiary of one the world’s largest publicly traded oil and gas company Exxon Mobil Corporation which holds 69.6% ownership stake.
IMO is a Zacks Rank #3 (Hold) stock, with a Value Style Score of A and VGM Score of A. Shares are currently trading at a forward P/E of 7.4X for the current fiscal year compared to the Oil and Gas - Integrated - Canadian industry's P/E of 7.2X. Additionally, IMO has a PEG Ratio of 0.3 and a Price/Cash Flow ratio of 10.7X. Value investors should also note IMO's Price/Sales ratio of 0.8X.
Many value investors pay close attention to a company's earnings as well. For IMO, two analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.07 to $7.56 per share for 2022. Per share IMO boasts an average earnings surprise of 4.7%.
IMO should be on investors' short lists because of its impressive earnings and valuation fundamentals, a good Zacks Rank, and strong Value and VGM Style Scores.
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Imperial Oil Limited (IMO) : Free Stock Analysis Report
