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Are These Oils-Energy Stocks Undervalued Right Now?
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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.
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 Callon Petroleum . CPE is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 4.18. This compares to its industry's average Forward P/E of 8.40. Over the past year, CPE's Forward P/E has been as high as 7.73 and as low as 2.52, with a median of 4.37.
We should also highlight that CPE has a P/B ratio of 1.86. 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. CPE's current P/B looks attractive when compared to its industry's average P/B of 3.31. Over the past year, CPE's P/B has been as high as 3.88 and as low as 1.41, with a median of 2.31.
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 prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. CPE has a P/S ratio of 1.84. This compares to its industry's average P/S of 2.81.
Finally, we should also recognize that CPE has a P/CF ratio of 5.08. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 10.80. Within the past 12 months, CPE's P/CF has been as high as 5.08 and as low as -40.27, with a median of -1.33.
Comstock Resources (CRK - Free Report) may be another strong Oil and Gas - Exploration and Production - United States stock to add to your shortlist. CRK is a # 2 (Buy) stock with a Value grade of A.
Comstock Resources also has a P/B ratio of 2.95 compared to its industry's price-to-book ratio of 3.31. Over the past year, its P/B ratio has been as high as 3.87, as low as 0.98, with a median of 1.75.
These are only a few of the key metrics included in Callon Petroleum and Comstock Resources strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, CPE and CRK look like an impressive value stock at the moment.
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Are These Oils-Energy Stocks Undervalued 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.
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 Callon Petroleum . CPE is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 4.18. This compares to its industry's average Forward P/E of 8.40. Over the past year, CPE's Forward P/E has been as high as 7.73 and as low as 2.52, with a median of 4.37.
We should also highlight that CPE has a P/B ratio of 1.86. 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. CPE's current P/B looks attractive when compared to its industry's average P/B of 3.31. Over the past year, CPE's P/B has been as high as 3.88 and as low as 1.41, with a median of 2.31.
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 prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. CPE has a P/S ratio of 1.84. This compares to its industry's average P/S of 2.81.
Finally, we should also recognize that CPE has a P/CF ratio of 5.08. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 10.80. Within the past 12 months, CPE's P/CF has been as high as 5.08 and as low as -40.27, with a median of -1.33.
Comstock Resources (CRK - Free Report) may be another strong Oil and Gas - Exploration and Production - United States stock to add to your shortlist. CRK is a # 2 (Buy) stock with a Value grade of A.
Comstock Resources also has a P/B ratio of 2.95 compared to its industry's price-to-book ratio of 3.31. Over the past year, its P/B ratio has been as high as 3.87, as low as 0.98, with a median of 1.75.
These are only a few of the key metrics included in Callon Petroleum and Comstock Resources strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, CPE and CRK look like an impressive value stock at the moment.