Yahoo Finance Should Value Investors Buy Repsol (REPYY) Stock?
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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 company to watch right now is Repsol (REPYY). REPYY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 4.47. This compares to its industry's average Forward P/E of 8.85. Over the past 52 weeks, REPYY's Forward P/E has been as high as 5.14 and as low as 3.81, with a median of 4.36.
Investors should also recognize that REPYY has a P/B ratio of 0.59. 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 company's current P/B looks solid when compared to its industry's average P/B of 1.33. REPYY's P/B has been as high as 0.69 and as low as 0.57, with a median of 0.62, 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. REPYY has a P/S ratio of 0.31. This compares to its industry's average P/S of 0.61.
Finally, we should also recognize that REPYY has a P/CF ratio of 3.09. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. REPYY's P/CF compares to its industry's average P/CF of 5.27. REPYY's P/CF has been as high as 3.84 and as low as 2.75, with a median of 3.21, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Repsol is likely undervalued currently. And when considering the strength of its earnings outlook, REPYY sticks out at as one of the market's strongest value stocks.
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