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.
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
SilverBow Resources is a stock many investors are watching right now. SBOW is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 2.95. This compares to its industry's average Forward P/E of 6.23. SBOW's Forward P/E has been as high as 5.16 and as low as 1.66, with a median of 2.77, all within the past year.
Another valuation metric that we should highlight is SBOW's P/B ratio of 1.76. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 3.55. Over the past 12 months, SBOW's P/B has been as high as 5.26 and as low as 0.93, with a median of 2.49.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. SBOW has a P/S ratio of 1.48. This compares to its industry's average P/S of 2.07.
Finally, investors will want to recognize that SBOW has a P/CF ratio of 4.34. 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 8.41. Within the past 12 months, SBOW's P/CF has been as high as 11.15 and as low as 2.09, with a median of 4.52.
Value investors will likely look at more than just these metrics, but the above data helps show that SilverBow Resources is likely undervalued currently. And when considering the strength of its earnings outlook, SBOW sticks out at as one of the market's strongest value stocks.
Image: Bigstock
Are Investors Undervaluing SilverBow Resources (SBOW) 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.
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
SilverBow Resources is a stock many investors are watching right now. SBOW is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 2.95. This compares to its industry's average Forward P/E of 6.23. SBOW's Forward P/E has been as high as 5.16 and as low as 1.66, with a median of 2.77, all within the past year.
Another valuation metric that we should highlight is SBOW's P/B ratio of 1.76. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 3.55. Over the past 12 months, SBOW's P/B has been as high as 5.26 and as low as 0.93, with a median of 2.49.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. SBOW has a P/S ratio of 1.48. This compares to its industry's average P/S of 2.07.
Finally, investors will want to recognize that SBOW has a P/CF ratio of 4.34. 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 8.41. Within the past 12 months, SBOW's P/CF has been as high as 11.15 and as low as 2.09, with a median of 4.52.
Value investors will likely look at more than just these metrics, but the above data helps show that SilverBow Resources is likely undervalued currently. And when considering the strength of its earnings outlook, SBOW sticks out at as one of the market's strongest value stocks.