Should Value Investors Buy Par Pacific (PARR) Stock?

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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 value investors might notice is Par Pacific (PARR). PARR is currently holding a Zacks Rank #2 (Buy) and a Value grade of A.

Another notable valuation metric for PARR is its 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 stock's P/B looks attractive against its industry's average P/B of 2.65. Over the past year, 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 love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. PARR has a P/S ratio of 0.48. This compares to its industry's average P/S of 0.6.

These are only a few of the key metrics included in Par Pacific's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, PARR looks like an impressive value stock at the moment.

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Par Pacific Holdings, Inc. (PARR): Free Stock Analysis Report

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

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