Is Repsol (REPYY) 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.

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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One stock to keep an eye on is Repsol (REPYY). REPYY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 3.17, which compares to its industry's average of 6.36. REPYY's Forward P/E has been as high as 7.40 and as low as 3.12, with a median of 5.35, all within the past year.

Investors should also note that REPYY holds a PEG ratio of 0.38. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. REPYY's PEG compares to its industry's average PEG of 0.49. Within the past year, REPYY's PEG has been as high as 1.22 and as low as 0.11, with a median of 0.18.

We should also highlight that REPYY has a P/B ratio of 0.68. The P/B ratio is used to compare a stock's market value with 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 1.40. Over the past year, REPYY's P/B has been as high as 0.96 and as low as 0.66, with a median of 0.74.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by 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. REPYY has a P/S ratio of 0.25. This compares to its industry's average P/S of 0.57.

Finally, we should also recognize that REPYY has a P/CF ratio of 2.93. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 6.05. Within the past 12 months, REPYY's P/CF has been as high as 6.77 and as low as 2.89, with a median of 3.83.

Vista Oil & Gas (VIST) may be another strong Oil and Gas - Integrated - International stock to add to your shortlist. VIST is a # 1 (Strong Buy) stock with a Value grade of A.

Vista Oil & Gas sports a P/B ratio of 1.28 as well; this compares to its industry's price-to-book ratio of 1.40. In the past 52 weeks, VIST's P/B has been as high as 1.46, as low as 0.69, with a median of 1.

These are only a few of the key metrics included in Repsol and Vista Oil & Gas strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, REPYY and VIST look like an impressive value stock at the moment.

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