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Are These Oils-Energy Stocks a Great Value Stocks Right Now?

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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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 to watch right now is Renewable Energy Group (REGI). REGI is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.

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. REGI has a P/S ratio of 0.8. This compares to its industry's average P/S of 1.13.

Finally, investors should note that REGI has a P/CF ratio of 8.93. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 19.43. Over the past year, REGI's P/CF has been as high as 28.60 and as low as 8.33, with a median of 13.38.

REX American Resources (REX) may be another strong Biofuels stock to add to your shortlist. REX is a # 1 (Strong Buy) stock with a Value grade of A.

REX American Resources sports a P/B ratio of 1.28 as well; this compares to its industry's price-to-book ratio of 4.97. In the past 52 weeks, REX's P/B has been as high as 1.58, as low as 0.97, with a median of 1.17.

These are just a handful of the figures considered in Renewable Energy Group and REX American Resources'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 REGI and REX is an impressive value stock right now.


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Renewable Energy Group, Inc. (REGI): Free Stock Analysis Report
 
REX American Resources Corporation (REX): Free Stock Analysis Report
 
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