Advertisement
New Zealand markets closed
  • NZX 50

    11,864.89
    -7.75 (-0.07%)
     
  • NZD/USD

    0.6138
    -0.0033 (-0.53%)
     
  • NZD/EUR

    0.5730
    -0.0011 (-0.19%)
     
  • ALL ORDS

    7,974.80
    -27.70 (-0.35%)
     
  • ASX 200

    7,724.30
    -25.40 (-0.33%)
     
  • OIL

    78.44
    -0.18 (-0.23%)
     
  • GOLD

    2,349.40
    +31.40 (+1.35%)
     
  • NASDAQ

    19,631.05
    +54.12 (+0.28%)
     
  • FTSE

    8,146.86
    -16.81 (-0.21%)
     
  • Dow Jones

    38,542.45
    -104.65 (-0.27%)
     
  • DAX

    18,002.02
    -263.66 (-1.44%)
     
  • Hang Seng

    17,941.78
    -170.85 (-0.94%)
     
  • NIKKEI 225

    38,814.56
    +94.09 (+0.24%)
     
  • NZD/JPY

    96.5140
    -0.3060 (-0.32%)
     

Are Investors Undervaluing PBF Energy (PBF) Right Now?

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.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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 company value investors might notice is PBF Energy (PBF). PBF is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 5.34, while its industry has an average P/E of 7.67. Over the past year, PBF's Forward P/E has been as high as 7.08 and as low as 1.56, with a median of 4.93.

ADVERTISEMENT

We should also highlight that PBF has a P/B ratio of 0.76. 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 1.97. Over the past year, PBF's P/B has been as high as 1.24 and as low as 0.75, with a median of 0.95.

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. PBF has a P/S ratio of 0.13. This compares to its industry's average P/S of 0.35.

Finally, our model also underscores that PBF has a P/CF ratio of 1.62. 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. PBF's current P/CF looks attractive when compared to its industry's average P/CF of 5.12. Over the past 52 weeks, PBF's P/CF has been as high as 1.98 and as low as 1.10, with a median of 1.62.

Value investors will likely look at more than just these metrics, but the above data helps show that PBF Energy is likely undervalued currently. And when considering the strength of its earnings outlook, PBF sticks out at as one of the market's strongest value stocks.

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

PBF Energy Inc. (PBF) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research