Are those oil and energy stocks high value stocks right now? – November 29, 2021

At Zacks, we focus on Zacks’ proven ranking system, which emphasizes profit estimates and estimate reviews to find great stocks. Nevertheless, we are always attentive to the latest trends in value, growth and dynamism to highlight the right choices.

Given these trends, value investing is clearly one of the most preferred ways to find solid stocks in any type of market. Value investors use a variety of methods, including proven valuation metrics, to find these stocks.

In addition to the Zacks Rankings, investors can also use our innovative style score system to find stocks with specific characteristics. For example, value investors will want to focus on the “Value” category. Stocks with high Zacks ranks and “A” ratings for value will be some of the highest quality value stocks on the market today.

One business to watch right now is Suburban propane partners (SPH Free report) . SPH currently holds a Zacks rank of # 2 (Buy) and a value rating of A. The stock has a forward P / E ratio of 7.22. This compares to its industry’s average futures P / E of 12.10. Over the past year, the forward P / E of SPH has reached 13.53 and as low as 7.21, with a median of 10.49.

Another notable valuation metric for SPH is its P / N ratio of 2.07. Investors use the P / B ratio to compare the market value of a stock against its book value, which is defined as total assets minus total liabilities. This company’s current P / B looks strong compared to its industry’s average P / B of 2.62. Over the past 12 months, the P / B of SPH has reached 2.78 and as low as 1.83, with a median of 2.14.

Finally, investors will want to recognize that SPH has a P / CF ratio of 4.02. This figure highlights a company’s operating cash flow and can be used to find undervalued companies given their impressive cash flow prospects. SPH’s P / CF compares to its industry average P / CF of 8.45. The P / CF of SPH has been as high as 5.84 and as low as 4.01, with a median of 4.59, all in the past year.

Sunoco (SUN Free report) may be another solid Oil and Gas Stock – Refining and Marketing – Master Limited Partnerships to add to your shortlist. SUN is a # 2 (Buy) stock with a Value rating of A.

Sunoco also has a P / N ratio of 5.12 compared to its industry’s price-to-book ratio of 2.62. Over the past year, its P / N ratio has reached 5.48, as low as 4.35, with a median of 4.86.

These numbers are just a handful of metrics that investors tend to look at, but they help show that Suburban Propane Partners and Sunoco are likely undervalued right now. Given this, along with its solid earnings outlook, SPH and SUN currently feel like high value stocks.


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