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.
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.
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 company value investors might notice is Par Pacific (PARR). PARR is currently sporting a Zacks Rank #1 (Strong Buy), as well as an A grade for Value.
Another valuation metric that we should highlight is PARR's P/B ratio of 1.57. 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 2.59. Within the past 52 weeks, PARR's P/B has been as high as 1.63 and as low as 0.58, with a median of 0.80.
Value investors also use the P/S ratio. The P/S ratio 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. PARR has a P/S ratio of 0.37. This compares to its industry's average P/S of 0.53.
These are just a handful of the figures considered in Par Pacific'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 PARR is an impressive value stock right now.
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Par Pacific Holdings, Inc. (PARR): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).