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Is Chesapeake Energy (CHK) a Great Value Stock Right Now?
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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.
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 value investors might notice is Chesapeake Energy . CHK is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock is trading with a P/E ratio of 6.37, which compares to its industry's average of 6.76. CHK's Forward P/E has been as high as 11.91 and as low as 5.81, with a median of 7.65, all within the past year.
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 popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. CHK has a P/S ratio of 1.81. This compares to its industry's average P/S of 2.29.
Finally, we should also recognize that CHK has a P/CF ratio of 1.44. 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. CHK's current P/CF looks attractive when compared to its industry's average P/CF of 4.18. Over the past year, CHK's P/CF has been as high as 1.67 and as low as 0.09, with a median of 1.17.
Equinor (EQNR - Free Report) may be another strong Alternative Energy - Other stock to add to your shortlist. EQNR is a # 1 (Strong Buy) stock with a Value grade of A.
Equinor is currently trading with a Forward P/E ratio of 6.86 while its PEG ratio sits at 0.14. Both of the company's metrics compare favorably to its industry's average P/E of 6.76 and average PEG ratio of 0.28.
EQNR's price-to-earnings ratio has been as high as 10.78 and as low as 6.60, with a median of 8.39, while its PEG ratio has been as high as 0.22 and as low as 0.13, with a median of 0.17, all within the past year.
Additionally, Equinor has a P/B ratio of 2.84 while its industry's price-to-book ratio sits at 1.22. For EQNR, this valuation metric has been as high as 3.24, as low as 1.66, with a median of 2.26 over the past year.
These are only a few of the key metrics included in Chesapeake Energy and Equinor strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, CHK and EQNR look like an impressive value stock at the moment.
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Is Chesapeake Energy (CHK) a Great Value Stock Right Now?
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.
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 value investors might notice is Chesapeake Energy . CHK is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock is trading with a P/E ratio of 6.37, which compares to its industry's average of 6.76. CHK's Forward P/E has been as high as 11.91 and as low as 5.81, with a median of 7.65, all within the past year.
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 popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. CHK has a P/S ratio of 1.81. This compares to its industry's average P/S of 2.29.
Finally, we should also recognize that CHK has a P/CF ratio of 1.44. 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. CHK's current P/CF looks attractive when compared to its industry's average P/CF of 4.18. Over the past year, CHK's P/CF has been as high as 1.67 and as low as 0.09, with a median of 1.17.
Equinor (EQNR - Free Report) may be another strong Alternative Energy - Other stock to add to your shortlist. EQNR is a # 1 (Strong Buy) stock with a Value grade of A.
Equinor is currently trading with a Forward P/E ratio of 6.86 while its PEG ratio sits at 0.14. Both of the company's metrics compare favorably to its industry's average P/E of 6.76 and average PEG ratio of 0.28.
EQNR's price-to-earnings ratio has been as high as 10.78 and as low as 6.60, with a median of 8.39, while its PEG ratio has been as high as 0.22 and as low as 0.13, with a median of 0.17, all within the past year.
Additionally, Equinor has a P/B ratio of 2.84 while its industry's price-to-book ratio sits at 1.22. For EQNR, this valuation metric has been as high as 3.24, as low as 1.66, with a median of 2.26 over the past year.
These are only a few of the key metrics included in Chesapeake Energy and Equinor strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, CHK and EQNR look like an impressive value stock at the moment.