Are Investors Undervaluing HF Sinclair (DINO) 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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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 HF Sinclair (DINO). DINO is currently holding a Zacks Rank #1 (Strong Buy) and a Value grade of A.

Another notable valuation metric for DINO is its P/B ratio of 1.05. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. DINO's current P/B looks attractive when compared to its industry's average P/B of 2.69. Over the past year, DINO's P/B has been as high as 1.06 and as low as 0.53, with a median of 0.76.

Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. DINO has a P/S ratio of 0.46. This compares to its industry's average P/S of 0.54.

Another great Oil and Gas - Refining and Marketing stock you could consider is Par Pacific (PARR), which is a Zacks Rank of #1 (Strong Buy) stock with a Value Score of A.

Furthermore, Par Pacific holds a P/B ratio of 1.57 and its industry's price-to-book ratio is 2.69. PARR's P/B has been as high as 1.63, as low as 0.58, with a median of 0.80 over the past 12 months.

These figures are just a handful of the metrics value investors tend to look at, but they help show that HF Sinclair and Par Pacific are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, DINO and PARR feels like a great value stock at the moment.

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This article originally published on Zacks Investment Research (zacks.com).

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