Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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.
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 company value investors might notice is SilverBow Resources . SBOW is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 2.08, which compares to its industry's average of 5.27. Over the past year, SBOW's Forward P/E has been as high as 5.16 and as low as 2.04, with a median of 2.86.
Investors should also recognize that SBOW has a P/B ratio of 2.27. Investors use the P/B ratio to look at a stock's market value versus 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 3.33. Over the past 12 months, SBOW's P/B has been as high as 5.26 and as low as 1.13, with a median of 2.57.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. SBOW has a P/S ratio of 1.06. This compares to its industry's average P/S of 2.03.
Finally, investors will want to recognize that SBOW has a P/CF ratio of 7.17. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 10.97. Over the past year, SBOW's P/CF has been as high as 11.15 and as low as -1.30, with a median of 4.52.
Southwestern Energy may be another strong Oil and Gas - Exploration and Production - United States stock to add to your shortlist. SWN is a # 2 (Buy) stock with a Value grade of A.
Furthermore, Southwestern Energy holds a P/B ratio of -62.94 and its industry's price-to-book ratio is 3.33. SWN's P/B has been as high as 6.28, as low as -221.16, with a median of -19.84 over the past 12 months.
Value investors will likely look at more than just these metrics, but the above data helps show that SilverBow Resources and Southwestern Energy are likely undervalued currently. And when considering the strength of its earnings outlook, SBOW and SWN sticks out as one of the market's strongest value stocks.
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Is SilverBow Resources (SBOW) Stock Undervalued Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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.
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 company value investors might notice is SilverBow Resources . SBOW is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 2.08, which compares to its industry's average of 5.27. Over the past year, SBOW's Forward P/E has been as high as 5.16 and as low as 2.04, with a median of 2.86.
Investors should also recognize that SBOW has a P/B ratio of 2.27. Investors use the P/B ratio to look at a stock's market value versus 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 3.33. Over the past 12 months, SBOW's P/B has been as high as 5.26 and as low as 1.13, with a median of 2.57.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. SBOW has a P/S ratio of 1.06. This compares to its industry's average P/S of 2.03.
Finally, investors will want to recognize that SBOW has a P/CF ratio of 7.17. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 10.97. Over the past year, SBOW's P/CF has been as high as 11.15 and as low as -1.30, with a median of 4.52.
Southwestern Energy may be another strong Oil and Gas - Exploration and Production - United States stock to add to your shortlist. SWN is a # 2 (Buy) stock with a Value grade of A.
Furthermore, Southwestern Energy holds a P/B ratio of -62.94 and its industry's price-to-book ratio is 3.33. SWN's P/B has been as high as 6.28, as low as -221.16, with a median of -19.84 over the past 12 months.
Value investors will likely look at more than just these metrics, but the above data helps show that SilverBow Resources and Southwestern Energy are likely undervalued currently. And when considering the strength of its earnings outlook, SBOW and SWN sticks out as one of the market's strongest value stocks.