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Is Vista Oil & Gas (VIST) a Great Value Stock Right Now?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find 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 Vista Oil & Gas (VIST - Free Report) . VIST is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 3.57. This compares to its industry's average Forward P/E of 6.40. Over the last 12 months, VIST's Forward P/E has been as high as 20.44 and as low as 2.83, with a median of 4.26.

Another valuation metric that we should highlight is VIST's P/B ratio of 1.29. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 1.30. VIST's P/B has been as high as 1.46 and as low as 0.69, with a median of 1.05, over the past year.

Finally, investors should note that VIST has a P/CF ratio of 2.64. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 4.88. Over the past 52 weeks, VIST's P/CF has been as high as 3.65 and as low as 1.63, with a median of 2.84.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Vista Oil & Gas is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, VIST feels like a great value stock at the moment.


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