Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 5 stocks made the list for top value stocks in the Oil & Gas - Transportation Services industry. Those looking for value stocks to add to their portfolio may want to use this list as a starting point for further investment research.

Why Focus on Undervalued Oil & Gas - Transportation Services Stocks?

Value investors seek to buy stocks at a discount to their intrinsic value. Long-term returns show that such strategies are advantageous. Value stocks, as a group, tend to outperform growth stocks over extended periods of time. Typically, value investors perform financial analysis of numerous metrics, don’t follow the herd and are long-term investors.

AAII’s A+ Investor Value Grade is derived from a stock’s Value Score. The Value Score is the percentile rank of the average of the percentile ranks of the price-to-sales ratio, price-earnings ratio, enterprise-value-to-EBITDA (EV/EBITDA) ratio, shareholder yield, price-to-book-value ratio and price-to-free-cash-flow ratio. The score is variable, meaning it can consider all six ratios or, should any of the six ratios not be valid, the remaining ratios that are valid. To be assigned a Value Score, stocks must have a valid (non-null) ratio and corresponding ranking for at least two of the six valuation ratios.

What Goes Into AAII’s Value Grade?

Stock evaluation requires access to huge amounts of data as well as the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movement. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors with that task.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A–F grades for more than just value. It is possible for a stock to appear cheap based on one valuation metric but appear expensive on another. It is also possible for one valuation ratio to be associated with outperforming stocks during certain periods of time but not others. Some stocks may even have null values for certain metrics like the price-earnings ratio or the price-to-book ratio but not others. An example of this would be a company with losses instead of profits or a negative book value because of heavy borrowing. Negative earnings or book value result in non-meaningful ratios that are left blank or null.

Click the button below to learn more about A+ Investor and subscribe today.

5 Undervalued Oil & Gas - Transportation Services Stocks

Of course, there are countless value stocks that are worth mentioning, but this is a concise list of the top 5 undervalued stocks in the Oil & Gas - Transportation Services industry for Monday, September 30, 2024. Let’s take a closer look at their individual scores to see how they measure up against each other and the Oil & Gas - Transportation Services industry median.

The Value Grade is assigned based on how each stock’s composite valuation compares to all other stocks.

The process for assigning grades starts with each variable for a given stock. The percentile rankings for all valid ratios that a stock has are calculated. So, for instance, a stock could have a price-to-book ranking in the 43rd percentile, a price-earnings ranking in the 67th percentile, a price-to-sales ranking in the 23rd percentile, etc. Then, those rankings are averaged for each stock. (A minimum of two valid variables are required, though all six will be used if available.)

Once the average of the individual variables is calculated, that average is ranked against all stocks. Put another way, each stock’s composite valuation is compared to all other stocks. These ranks are then sorted into quintiles from the cheapest 20% (a grade of A) to the most expensive 20% (a grade of F).

As always, we recommend that you conduct proper due diligence and research before investing in any security. We also suggest that investors utilize numerous grades, not just value, when it comes to deciding whether a company is a good fit for their allocation needs.

DHT Holdings Inc’s Value Grade

Value Grade:

DHT Holdings, Inc. is an independent crude oil tanker company. The Company's fleet trades internationally and consists of crude oil tankers in the Very Large Crude Carriers (VLCC) segment. Its primary business is operating a fleet of crude oil tankers, with a secondary activity of providing technical management services. The Company operates its vessels through its subsidiary management companies in Monaco, Norway, Singapore, and India. Its principal activity is the ownership and operation of a fleet of crude oil carriers. It has approximately 28 vessels in operation. The fleet operates globally on international routes. The Company's fleets are comprised of DHT Addax, DHT Antelope, DHT Gazelle, DHT Impala, DHT Appaloosa, DHT Mustang, DHT Bronco, DHT Colt, DHT Stallion, DHT Tiger, DHT Harrier, DHT Puma, DHT Panther, DHT Osprey, DHT Lion, DHT Leopard, DHT Jaguar, DHT Taiga, DHT Sundarbans, and DHT Scandinavia, among others.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

DHT Holdings Inc has a Value Score of 65, which is considered to be undervalued.

When you look at DHT Holdings Inc’s price-to-sales ratio at 3.12 compared to the industry median at 2.02, this company has a higher price relative to revenue compared to its peers. This could make DHT Holdings Inc’s stock less attractive for value investors.

DHT Holdings Inc’s price-earnings ratio is 11.36 compared to the industry median at 13.58. This means it has a lower share price relative to earnings compared to its peers. This could make DHT Holdings Inc more attractive for value investors.

Now, let’s assess DHT Holdings Inc’s EV/EBITDA ratio, also known as enterprise multiple. At 7.3, when compared to the industry median of 9.2, the company may be considered undervalued in relation to its peers. Value investors could use the enterprise multiple to identify stocks that are considered overvalued or undervalued relative to their industry.

Shareholder yield is the sum of a stock’s dividend yield (paid over previous 12 months minus special dividends) and the percentage of net share buybacks over the previous 12 months. DHT Holdings Inc’s shareholder yield is higher than its industry median ratio of 4.07%. Value investors may look for an attractive shareholder yield because it can be a powerful tool for identifying if the company has a good management team.

As one of the most common value metrics, the price-to-book ratio evaluates a company’s current market price relative to its book value. DHT Holdings Inc’s price-to-book ratio is higher than its industry median ratio of 1.66. This could make DHT Holdings Inc less attractive to investors looking for a new addition to their portfolio.

Lastly, let’s take a look at DHT Holdings Inc’s price-to-free-cash-flow ratio (P/FCF), which can indicate a company’s market value relative to its operating cash flow. DHT Holdings Inc’s price-to-free-cash-flow ratio is higher than its industry median ratio of 16.68. This could make DHT Holdings Inc less attractive because the higher P/FCF ratio indicates that DHT Holdings Inc is undervalued. The P/FCF ratio metric can also be viewed over a long-term time frame to see if the company's cash flow to share price value is generally improving or worsening.

Delek Logistics Partners LP’s Value Grade

Value Grade:

Delek Logistics Partners, LP owns and operates crude oil, intermediate and refined products logistics and marketing assets as well as crude oil and natural gas gathering and water processing assets. Its segments include Gathering and Processing, Wholesale Marketing and Terminalling, Storage and Transportation, and Investment in Joint Ventures. Gathering and Processing segment provides crude oil and natural gas gathering and processing, water disposal and recycling and storage services to Delek Holdings' refining operations in Tyler, Texas, El Dorado, Arkansas and Big Spring, Texas. Wholesale Marketing and Terminalling segment consists of refined products terminals and pipelines in Texas, Tennessee, Arkansas, and Oklahoma. Storage and Transportation segment provides crude oil, intermediate and refined products transportation, and storage services to Delek Holdings' refining operations in Tyler, Texas, El Dorado, Arkansas and Big Spring, Texas. It also offers midstream service solutions.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Delek Logistics Partners LP has a Value Score of 66, which is considered to be undervalued.

Delek Logistics Partners LP’s price-earnings ratio is 14.8 compared to the industry median at 13.6. This means that it has a higher price relative to its earnings compared to its peers. This makes Delek Logistics Partners LP less attractive for value investors.

You can read more about Delek Logistics Partners LP’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Enterprise Products Partners LP’s Value Grade

Value Grade:

Enterprise Products Partners L.P. provides midstream energy services to producers and consumers of natural gas, natural gas liquids (NGLs), crude oil, petrochemicals and refined products. Its NGL Pipelines & Services segment includes natural gas processing and related NGL marketing activities, NGL pipelines, NGL fractionation facilities, NGL and related product storage facilities and NGL marine terminals. Its Crude Oil Pipelines & Services segment includes crude oil pipelines, crude oil storage and marine terminals and related crude oil marketing activities. Its Natural Gas Pipelines & Services segment includes natural gas pipeline systems that provide for the gathering, treating and transportation of natural gas. Its Petrochemical & Refined Products Services segment includes propylene production facilities, butane isomerization complex and related deisobutanizer operations and others. It also owns 20% interest in Whitethorn and has two NGL fractionators located in Mont Belvieu, Texas.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Enterprise Products Partners LP has a Value Score of 71, which is considered to be undervalued.

Enterprise Products Partners LP’s price-earnings ratio is 11.1 compared to the industry median at 13.6. This means that it has a lower price relative to its earnings compared to its peers. This makes Enterprise Products Partners LP more attractive for value investors.

Enterprise Products Partners LP’s price-to-book ratio is lower than its peers. This could make Enterprise Products Partners LP more attractive for value investors when compared to the industry median at 1.66.

You can read more about Enterprise Products Partners LP’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Nordic American Tankers Ltd’s Value Grade

Value Grade:

Nordic American Tankers Limited is an international tanker company focusing solely on owning, operating and chartering of Suezmax tankers. The Company has a fleet of approximately 19 Suezmax crude oil tankers. Its Suezmax vessels has a carrying capacity of one million barrels of oil. The Company's tankers operating in the spot market are chartered for a single voyage. The vessels in the Company's fleet are homogenous and interchangeable as they have approximately the same freight capacity and ability to transport the same type of cargo. Its vessels include Nordic Pollux, Nordic Apollo, Nordic Luna, Nordic Castor, Nordic Freedom, Nordic Sprinter, Nordic Skier, Nordic Vega, Nordic Light, Nordic Cross, Nordic Breeze, Nordic Zenith, Nordic Star, Nordic Space, Nordic Aquarius, Nordic Cygnus, Nordic Tellus, Nordic Hunter and Nordic Harrier.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Nordic American Tankers Ltd has a Value Score of 62, which is considered to be undervalued.

Nordic American Tankers Ltd’s price-earnings ratio is 12.3 compared to the industry median at 13.6. This means that it has a lower price relative to its earnings compared to its peers. This makes Nordic American Tankers Ltd more attractive for value investors.

Nordic American Tankers Ltd’s price-to-book ratio is higher than its peers. This could make Nordic American Tankers Ltd less attractive for value investors when compared to the industry median at 1.66.

You can read more about Nordic American Tankers Ltd’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Plains All American Pipeline, L.P.’s Value Grade

Value Grade:

Plains All American Pipeline, L.P. is a midstream service provider in North America. The Company owns a network of pipeline transportation, terminalling, storage and gathering assets in key crude oil and natural gas liquids (NGL) producing basins (including the Permian Basin) and transportation corridors and at major market hubs in the United States and Canada. It has two segments: Crude Oil and Natural Gas Liquids (NGL). Its Crude Oil segment operations generally consist of gathering and transporting crude oil using pipelines, gathering systems, trucks and at times on barges or railcars, in addition to providing terminalling, storage and other facilities-related services utilizing its integrated assets across the United States and Canada. Its NGL segment operations involve natural gas processing and NGL fractionation, storage, transportation and terminalling. NGL segment is involved in gathering, fractionation, storage, and/or terminalling services to third-party customers.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Plains All American Pipeline, L.P. has a Value Score of 84, which is considered to be undervalued.

Plains All American Pipeline, L.P.’s price-earnings ratio is 15.9 compared to the industry median at 13.6. This means that it has a higher price relative to its earnings compared to its peers. This makes Plains All American Pipeline, L.P. less attractive for value investors.

Plains All American Pipeline, L.P.’s price-to-book ratio is higher than its peers. This could make Plains All American Pipeline, L.P. less attractive for value investors when compared to the industry median at 1.66.

You can read more about Plains All American Pipeline, L.P.’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Other Oil & Gas - Transportation Services Stock Grades

Value is just one of the five Stock Grades included in our A+ Investor service. AAII members can see the top-graded stocks—those with grades of A or B for value, growth, momentum, earnings estimate revisions and quality—on the A+ Stock Grades Screener.

Also, if you want full access to all of AAII’s premium services, you can subscribe to one convenient bundled plan called AAII Platinum where you can try out A+ Investor, AAII Dividend Investing, the Stock Superstars Report, Growth Investing and VMQ Stocks. With the other premium services, you can dive deep into additional metrics, portfolios, commentary and information about Oil & Gas - Transportation Services stocks as well as other industrys.

Choosing Which of the 5 Best Oil & Gas - Transportation Services Stocks Is Right for You

Choosing which value stocks to invest in will ultimately depend on your individual goals and allocation; however, comparing similar value stocks in the same industry can help you analyze which might be better investments for you in the long run. So, let’s take a look at the Value Grade for all of our stocks.

• DHT Holdings Inc stock has a Value Grade of B.
• Delek Logistics Partners LP stock has a Value Grade of B.
• Enterprise Products Partners LP stock has a Value Grade of B.
• Nordic American Tankers Ltd stock has a Value Grade of B.
• Plains All American Pipeline, L.P. stock has a Value Grade of A.

Now that you have a bit more background about each of the 5 undervalued stocks in the Oil & Gas - Transportation Services industry as well as their overall grades, it’s time for you to conduct additional research to see if these could fit your portfolio needs based on your goals and risk tolerance. AAII can help you figure out both and identify which investments align with what works best for you.

We do so through a program of education that teaches you to invest for yourself and become an effective manager of your own wealth—no more relying on others for your financial independence. You can rely on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis that makes you a better investor.

A+ Investor adds to that qualitative teaching by giving you a powerful data suite that helps you whittle down investment decisions to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.

Additional Resources About Oil & Gas - Transportation Services Stocks

Want to learn more about Oil & Gas - Transportation Services stocks to see if they could be the right investment for you? Check out some additional resources and articles to help you on your financial journey.

• 5 Undervalued Oil & Gas - Transportation Services Stocks for Monday, September 30
• 4 Undervalued Oil & Gas - Transportation Services Stocks for Friday, September 27
• Why Golar LNG Limited (USA)’s (GLNG) Stock Is Up 5.37%
• Why Kinetik Holdings Inc’s (KNTK) Stock Is Down 5.15%

AAII Disclaimer

We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown, because past, hypothetical or simulated performance is not necessarily indicative of future results. Before making an investment decision, you should consider your circumstances and whether the information on our content is applicable to your situation. This information was prepared in good faith and we accept no liability for any errors or omissions. The full disclaimer can be read here.