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Is PBF Energy (PBF) Stock Undervalued Right Now?

·4-min read

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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 holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock holds a P/E ratio of 4.94, while its industry has an average P/E of 6.21. PBF's Forward P/E has been as high as 48.60 and as low as -103.69, with a median of 7.05, all within the past year.

Investors should also recognize that PBF has a P/B ratio of 1.39. 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 1.81. PBF's P/B has been as high as 2.09 and as low as 0.40, with a median of 0.79, over the past year.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. PBF has a P/S ratio of 0.12. This compares to its industry's average P/S of 0.33.

Finally, investors will want to recognize that PBF has a P/CF ratio of 4.73. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 5.23. Over the past 52 weeks, PBF's P/CF has been as high as 8.41 and as low as -13.23, with a median of 4.14.

Investors could also keep in mind Phillips 66 (PSX), an Oil and Gas - Refining and Marketing stock with a Zacks Rank of # 2 (Buy) and Value grade of A.

Phillips 66 is currently trading with a Forward P/E ratio of 7.49 while its PEG ratio sits at 0.65. Both of the company's metrics compare favorably to its industry's average P/E of 6.21 and average PEG ratio of 0.23.

PSX's Forward P/E has been as high as 19.08 and as low as 7.49, with a median of 11.29. During the same time period, its PEG ratio has been as high as 2.40, as low as 0.50, with a median of 0.76.

Furthermore, Phillips 66 holds a P/B ratio of 1.78 and its industry's price-to-book ratio is 1.81. PSX's P/B has been as high as 2.40, as low as 1.37, with a median of 1.69 over the past 12 months.

These are only a few of the key metrics included in PBF Energy and Phillips 66 strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, PBF and PSX look like an impressive value stock at the moment.


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