Benzinga - by Zacks, Benzinga Contributor.
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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. 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 company to watch right now is YPF Sociedad Anonima (NYSE: YPF). YPF is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A.
We should also highlight that YPF has a P/B ratio of 0.92. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 1.47. Over the past 12 months, YPF's P/B has been as high as 0.95 and as low as 0.35, with a median of 0.52.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. YPF has a P/S ratio of 0.46. This compares to its industry's average P/S of 0.63.
Finally, investors will want to recognize that YPF has a P/CF ratio of 4.23. 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 5.42. Over the past year, YPF's P/CF has been as high as 4.34 and as low as 0.79, with a median of 1.15.
These figures are just a handful of the metrics value investors tend to look at, but they help show that YPF Sociedad Anonima is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, YPF feels like a great value stock at the moment.
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