Should Value Investors Buy BP (BP) Stock?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One stock to keep an eye on is BP (BP). BP is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock has a Forward P/E ratio of 4.49. This compares to its industry's average Forward P/E of 6.15. BP's Forward P/E has been as high as 8.28 and as low as 3.94, with a median of 6.26, all within the past year.
If you're looking for another solid Oil and Gas - Integrated - International value stock, take a look at OMV (OMVJF). OMVJF is a # 1 (Strong Buy) stock with a Value score of A.
Additionally, OMV has a P/B ratio of 0.52 while its industry's price-to-book ratio sits at 1.25. For OMVJF, this valuation metric has been as high as 0.87, as low as 0.50, with a median of 0.67 over the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that BP and OMV are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, BP and OMVJF feels like a great value stock at the moment.
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BP p.l.c. (BP) : Free Stock Analysis Report
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