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Are These Oils-Energy Stocks a Great Value Stocks Right Now?

·3-min read

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.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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 PetroChina (PTR). PTR 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 5.69, while its industry has an average P/E of 8.06. Over the past 52 weeks, PTR's Forward P/E has been as high as 22.38 and as low as 5.58, with a median of 8.37.

Another valuation metric that we should highlight is PTR's P/B ratio of 0.37. The P/B ratio pits a stock's market value against 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 1.06. Within the past 52 weeks, PTR's P/B has been as high as 0.46 and as low as 0.28, with a median of 0.35.

If you're looking for another solid Oil and Gas - Integrated - International value stock, take a look at Sasol (SSL). SSL is a # 2 (Buy) stock with a Value score of A.

Shares of Sasol are currently trading at a forward earnings multiple of 4.24 and a PEG ratio of 0.30 compared to its industry's P/E and PEG ratios of 8.06 and 0.56, respectively.

SSL's price-to-earnings ratio has been as high as 21.92 and as low as 3.62, with a median of 5.10, while its PEG ratio has been as high as 1.01 and as low as 0.13, with a median of 0.31, all within the past year.

Furthermore, Sasol holds a P/B ratio of 1.01 and its industry's price-to-book ratio is 1.06. SSL's P/B has been as high as 1.25, as low as 0.46, with a median of 0.96 over the past 12 months.

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


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PetroChina Company Limited (PTR) : Free Stock Analysis Report
 
Sasol Ltd. (SSL) : Free Stock Analysis Report
 
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Zacks Investment Research

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