Is Repsol (REPYY) Stock Undervalued Right Now?

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.Repsol (REPYY) is a stock many investors are watching right now. REPYY is currently sporting a Zacks Rank #1 (Strong Buy), as well as an A grade for Value. The stock holds a P/E ratio of 5.72, while its industry has an average P/E of 12.19. Over the last 12 months, REPYY's Forward P/E has been as high as 5.73 and as low as 3.98, with a median of 4.77. Another valuation metric that we should highlight is REPYY's P/B ratio of 0.56. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 1.50. Within the past 52 weeks, REPYY's P/B has been as high as 0.64 and as low as 0.39, with a median of 0.49.Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. REPYY has a P/S ratio of 0.28. This compares to its industry's average P/S of 0.59.Finally, investors will want to recognize that REPYY has a P/CF ratio of 4.20. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 6.59. Over the past 52 weeks, REPYY's P/CF has been as high as 4.20 and as low as 2.06, with a median of 2.81.These figures are just a handful of the metrics value investors tend to look at, but they help show that Repsol is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, REPYY feels like a great value stock at the moment.Zacks' Research Chief Picks Stock Most Likely to "At Least Double"Our experts have revealed their Top 5 recommendations with money-doubling potential – and Director of Research Sheraz Mian believes one is superior to the others. Of course, all our picks aren’t winners but this one could far surpass earlier recommendations like Hims & Hers Health, which shot up +209%.See Our Top Stock to Double (Plus 4 Runners Up) >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Repsol SA (REPYY): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks