New Zealand markets open in 9 hours 12 minutes
  • NZX 50

    11,631.60
    -46.15 (-0.40%)
     
  • NZD/USD

    0.6335
    +0.0012 (+0.20%)
     
  • ALL ORDS

    7,487.70
    -40.10 (-0.53%)
     
  • OIL

    75.81
    -1.12 (-1.46%)
     
  • GOLD

    1,770.80
    +3.40 (+0.19%)
     

Is PBF Energy (PBF) Stock Undervalued Right Now?

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader 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 stock to keep an eye on is PBF Energy (PBF). PBF is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 2.90 right now. For comparison, its industry sports an average P/E of 4.92. Over the past 52 weeks, PBF's Forward P/E has been as high as 48.60 and as low as -103.69, with a median of 7.05.

Another valuation metric that we should highlight is PBF's P/B ratio of 1.03. 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 solid versus its industry's average P/B of 1.68. Over the past year, PBF's P/B has been as high as 2.09 and as low as 0.55, with a median of 0.93.

Finally, we should also recognize that PBF has a P/CF ratio of 2.11. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 4.11. Over the past 52 weeks, PBF's P/CF has been as high as 7.13 and as low as -12, with a median of 4.07.

If you're looking for another solid Oil and Gas - Refining and Marketing value stock, take a look at Phillips 66 (PSX). PSX is a # 2 (Buy) stock with a Value score of A.

Shares of Phillips 66 currently holds a Forward P/E ratio of 6.56, and its PEG ratio is 0.53. In comparison, its industry sports average P/E and PEG ratios of 4.92 and 0.63.

Over the last 12 months, PSX's P/E has been as high as 19.08, as low as 6.40, with a median of 10.57, and its PEG ratio has been as high as 2.40, as low as 0.50, with a median of 0.65.

Phillips 66 also has a P/B ratio of 1.61 compared to its industry's price-to-book ratio of 1.68. Over the past year, its P/B ratio has been as high as 2.40, as low as 1.37, with a median of 1.71.

These are just a handful of the figures considered in PBF Energy and Phillips 66's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that PBF and PSX is an impressive value stock right now.


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
 
Phillips 66 (PSX) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research