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Are Investors Undervaluing Baytex Energy (BTE) Right Now?
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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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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.
Baytex Energy (BTE - Free Report) is a stock many investors are watching right now. BTE is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 7.30 right now. For comparison, its industry sports an average P/E of 8.17. Over the past 52 weeks, BTE's Forward P/E has been as high as 9.85 and as low as 4.47, with a median of 7.04.
We should also highlight that BTE has a P/B ratio of 0.91. 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 solid versus its industry's average P/B of 1.44. Over the past year, BTE's P/B has been as high as 2.28 and as low as 0.75, with a median of 1.35.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. BTE has a P/S ratio of 0.99. This compares to its industry's average P/S of 1.1.
Finally, we should also recognize that BTE has a P/CF ratio of 1.90. 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. BTE's current P/CF looks attractive when compared to its industry's average P/CF of 3.08. BTE's P/CF has been as high as 2.97 and as low as 1.38, with a median of 2.14, all within the past year.
Crescent Point Energy may be another strong Oil and Gas - Exploration and Production - Canadian stock to add to your shortlist. CPG is a # 2 (Buy) stock with a Value grade of A.
Crescent Point Energy also has a P/B ratio of 0.83 compared to its industry's price-to-book ratio of 1.44. Over the past year, its P/B ratio has been as high as 1.20, as low as 0.59, with a median of 0.78.
These are only a few of the key metrics included in Baytex Energy and Crescent Point Energy strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, BTE and CPG look like an impressive value stock at the moment.
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Are Investors Undervaluing Baytex Energy (BTE) 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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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.
Baytex Energy (BTE - Free Report) is a stock many investors are watching right now. BTE is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 7.30 right now. For comparison, its industry sports an average P/E of 8.17. Over the past 52 weeks, BTE's Forward P/E has been as high as 9.85 and as low as 4.47, with a median of 7.04.
We should also highlight that BTE has a P/B ratio of 0.91. 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 solid versus its industry's average P/B of 1.44. Over the past year, BTE's P/B has been as high as 2.28 and as low as 0.75, with a median of 1.35.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. BTE has a P/S ratio of 0.99. This compares to its industry's average P/S of 1.1.
Finally, we should also recognize that BTE has a P/CF ratio of 1.90. 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. BTE's current P/CF looks attractive when compared to its industry's average P/CF of 3.08. BTE's P/CF has been as high as 2.97 and as low as 1.38, with a median of 2.14, all within the past year.
Crescent Point Energy may be another strong Oil and Gas - Exploration and Production - Canadian stock to add to your shortlist. CPG is a # 2 (Buy) stock with a Value grade of A.
Crescent Point Energy also has a P/B ratio of 0.83 compared to its industry's price-to-book ratio of 1.44. Over the past year, its P/B ratio has been as high as 1.20, as low as 0.59, with a median of 0.78.
These are only a few of the key metrics included in Baytex Energy and Crescent Point Energy strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, BTE and CPG look like an impressive value stock at the moment.