Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore 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.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
Centennial Resource Development is a stock many investors are watching right now. CDEV is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 5.76, which compares to its industry's average of 7.82. Over the last 12 months, CDEV's Forward P/E has been as high as 43.67 and as low as 5.25, with a median of 7.38.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. CDEV has a P/S ratio of 2.26. This compares to its industry's average P/S of 2.7.
Finally, investors will want to recognize that CDEV has a P/CF ratio of 5.79. 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 9.79. Within the past 12 months, CDEV's P/CF has been as high as 18.55 and as low as -4.04, with a median of 10.64.
Another great Oil and Gas - Exploration and Production - United States stock you could consider is Callon Petroleum , which is a # 2 (Buy) stock with a Value Score of A.
Callon Petroleum is currently trading with a Forward P/E ratio of 3.87 while its PEG ratio sits at 1. Both of the company's metrics compare favorably to its industry's average P/E of 7.82 and average PEG ratio of 0.21.
Callon Petroleum also has a P/B ratio of 1.68 compared to its industry's price-to-book ratio of 3. Over the past year, its P/B ratio has been as high as 3.88, as low as 1.41, with a median of 2.31.
Value investors will likely look at more than just these metrics, but the above data helps show that Centennial Resource Development and Callon Petroleum are likely undervalued currently. And when considering the strength of its earnings outlook, CDEV and CPE sticks out as one of the market's strongest value stocks.
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Are These Oils-Energy Stocks a Great Value Stocks Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore 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.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
Centennial Resource Development is a stock many investors are watching right now. CDEV is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 5.76, which compares to its industry's average of 7.82. Over the last 12 months, CDEV's Forward P/E has been as high as 43.67 and as low as 5.25, with a median of 7.38.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. CDEV has a P/S ratio of 2.26. This compares to its industry's average P/S of 2.7.
Finally, investors will want to recognize that CDEV has a P/CF ratio of 5.79. 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 9.79. Within the past 12 months, CDEV's P/CF has been as high as 18.55 and as low as -4.04, with a median of 10.64.
Another great Oil and Gas - Exploration and Production - United States stock you could consider is Callon Petroleum , which is a # 2 (Buy) stock with a Value Score of A.
Callon Petroleum is currently trading with a Forward P/E ratio of 3.87 while its PEG ratio sits at 1. Both of the company's metrics compare favorably to its industry's average P/E of 7.82 and average PEG ratio of 0.21.
Callon Petroleum also has a P/B ratio of 1.68 compared to its industry's price-to-book ratio of 3. Over the past year, its P/B ratio has been as high as 3.88, as low as 1.41, with a median of 2.31.
Value investors will likely look at more than just these metrics, but the above data helps show that Centennial Resource Development and Callon Petroleum are likely undervalued currently. And when considering the strength of its earnings outlook, CDEV and CPE sticks out as one of the market's strongest value stocks.