Is OMV (OMVKY) Stock Undervalued Right Now?

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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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.

One stock to keep an eye on is OMV (OMVKY). OMVKY is currently sporting a Zacks Rank #1 (Strong Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 7.99. This compares to its industry's average Forward P/E of 16.34. Over the last 12 months, OMVKY's Forward P/E has been as high as 8.69 and as low as 5.63, with a median of 7.59.

Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by sales. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. OMVKY has a P/S ratio of 0.81. This compares to its industry's average P/S of 1.01.

Value investors will likely look at more than just these metrics, but the above data helps show that OMV is likely undervalued currently. And when considering the strength of its earnings outlook, OMVKY sticks out as one of the market's strongest value stocks.

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

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