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Is Murphy USA (MUSA) a Great Value Stock Right Now?

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

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 company to watch right now is Murphy USA (MUSA). MUSA is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock has a Forward P/E ratio of 14.73. This compares to its industry's average Forward P/E of 29.05. Over the past 52 weeks, MUSA's Forward P/E has been as high as 25.62 and as low as 13.62, with a median of 18.66.

MUSA is also sporting a PEG ratio of 2.06. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. MUSA's PEG compares to its industry's average PEG of 2.63. MUSA's PEG has been as high as 6.41 and as low as 1.98, with a median of 4.78, all within the past year.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Murphy USA is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, MUSA feels like a great value stock at the moment.


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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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