Should Value Investors Buy OMV (OMVKY) Stock?

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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.

OMV (OMVKY) is a stock many investors are watching right now. OMVKY is currently sporting a Zacks Rank #1 (Strong Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 7.99, which compares to its industry's average of 16.60. Over the past 52 weeks, OMVKY's Forward P/E has been as high as 8.69 and as low as 5.63, with a median of 7.59.

Investors will also notice that OMVKY has a PEG ratio of 1.41. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. OMVKY's industry currently sports an average PEG of 1.66. Over the past 52 weeks, OMVKY's PEG has been as high as 1.53 and as low as 0.75, with a median of 1.20.

Another valuation metric that we should highlight is OMVKY's P/B ratio of 0.67. The P/B ratio pits a stock's market value against 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 1.90. OMVKY's P/B has been as high as 0.73 and as low as 0.47, with a median of 0.65, over the past year.

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. OMVKY has a P/S ratio of 0.75. This compares to its industry's average P/S of 0.86.

These are just a handful of the figures considered in OMV'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 OMVKY is an impressive value stock right now.

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

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