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Should Value Investors Buy Continental Resources (CLR) Stock?
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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.
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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.
One company value investors might notice is Continental Resources . CLR is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.
We also note that CLR holds a PEG ratio of 0.14. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. CLR's industry currently sports an average PEG of 0.16. Over the last 12 months, CLR's PEG has been as high as 6.29 and as low as 0.13, with a median of 0.27.
Investors should also recognize that CLR has a P/B ratio of 2.78. 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 3.07. Over the past year, CLR's P/B has been as high as 3.26 and as low as 1.69, with a median of 2.47.
Finally, our model also underscores that CLR has a P/CF ratio of 5.97. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 10.14. Over the past year, CLR's P/CF has been as high as 7.11 and as low as 4.58, with a median of 5.83.
Investors could also keep in mind Southwestern Energy (SWN - Free Report) , an Oil and Gas - Exploration and Production - United States stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Furthermore, Southwestern Energy holds a P/B ratio of -55.53 and its industry's price-to-book ratio is 3.07. SWN's P/B has been as high as 2.91, as low as -221.16, with a median of -54.96 over the past 12 months.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Continental Resources and Southwestern Energy are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CLR and SWN feels like a great value stock at the moment.
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Should Value Investors Buy Continental Resources (CLR) Stock?
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.
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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.
One company value investors might notice is Continental Resources . CLR is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.
We also note that CLR holds a PEG ratio of 0.14. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. CLR's industry currently sports an average PEG of 0.16. Over the last 12 months, CLR's PEG has been as high as 6.29 and as low as 0.13, with a median of 0.27.
Investors should also recognize that CLR has a P/B ratio of 2.78. 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 3.07. Over the past year, CLR's P/B has been as high as 3.26 and as low as 1.69, with a median of 2.47.
Finally, our model also underscores that CLR has a P/CF ratio of 5.97. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 10.14. Over the past year, CLR's P/CF has been as high as 7.11 and as low as 4.58, with a median of 5.83.
Investors could also keep in mind Southwestern Energy (SWN - Free Report) , an Oil and Gas - Exploration and Production - United States stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Furthermore, Southwestern Energy holds a P/B ratio of -55.53 and its industry's price-to-book ratio is 3.07. SWN's P/B has been as high as 2.91, as low as -221.16, with a median of -54.96 over the past 12 months.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Continental Resources and Southwestern Energy are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CLR and SWN feels like a great value stock at the moment.