Should Value Investors Buy TOTAL S.A. (TOT) 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, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on is TOTAL S.A. (TOT). TOT is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 10.35, while its industry has an average P/E of 13.89. TOT's Forward P/E has been as high as 12.82 and as low as 8.70, with a median of 10.42, all within the past year.
We also note that TOT holds a PEG ratio of 1.07. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. TOT's PEG compares to its industry's average PEG of 1.52. Within the past year, TOT's PEG has been as high as 1.62 and as low as 0.71, with a median of 1.
We should also highlight that TOT has a P/B ratio of 1.19. 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 attractive against its industry's average P/B of 1.30. Within the past 52 weeks, TOT's P/B has been as high as 1.35 and as low as 1.04, with a median of 1.22.
Finally, investors will want to recognize that TOT has a P/CF ratio of 5.71. 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 6.31. Over the past 52 weeks, TOT's P/CF has been as high as 7.05 and as low as 4.93, with a median of 6.10.
These are just a handful of the figures considered in TOTAL S.A.'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 TOT is an impressive value stock right now.
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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.