Yahoo Finance Is CVR Energy (CVI) Stock Undervalued Right Now?
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.
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.
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 value investors might notice is CVR Energy (CVI). CVI is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value.
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. CVI has a P/S ratio of 0.27. This compares to its industry's average P/S of 0.28.
Finally, investors will want to recognize that CVI has a P/CF ratio of 4.01. 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. This stock's P/CF looks attractive against its industry's average P/CF of 4.39. Over the past year, CVI's P/CF has been as high as 9.88 and as low as 3.79, with a median of 5.28.
Marathon Petroleum (MPC) may be another strong Oil and Gas - Refining and Marketing stock to add to your shortlist. MPC is a # 2 (Buy) stock with a Value grade of A.
Marathon Petroleum is currently trading with a Forward P/E ratio of 7.22 while its PEG ratio sits at 0.25. Both of the company's metrics compare favorably to its industry's average P/E of 6.19 and average PEG ratio of 0.72.
Over the last 12 months, MPC's P/E has been as high as 14.22, as low as 4.42, with a median of 7.23, and its PEG ratio has been as high as 1.20, as low as 0.19, with a median of 0.30.
Furthermore, Marathon Petroleum holds a P/B ratio of 1.69 and its industry's price-to-book ratio is 1.30. MPC's P/B has been as high as 2.03, as low as 1.21, with a median of 1.62 over the past 12 months.
These are just a handful of the figures considered in CVR Energy and Marathon Petroleum'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 CVI and MPC is an impressive value stock right now.
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CVR Energy Inc. (CVI) : Free Stock Analysis Report
Marathon Petroleum Corporation (MPC) : Free Stock Analysis Report
