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Are Investors Undervaluing Vaalco Energy (EGY) Right Now?

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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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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.

Vaalco Energy (EGY - Free Report) is a stock many investors are watching right now. EGY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 2.87, which compares to its industry's average of 5.47. Over the last 12 months, EGY's Forward P/E has been as high as 5.52 and as low as 1.71, with a median of 3.07.

We should also highlight that EGY has a P/B ratio of 1.07. The P/B is a method of comparing a stock's market value to 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 2.26. Over the past year, EGY's P/B has been as high as 1.89 and as low as 0.86, with a median of 1.04.

Finally, our model also underscores that EGY has a P/CF ratio of 3.68. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 4.03. Within the past 12 months, EGY's P/CF has been as high as 5.27 and as low as 2.60, with a median of 3.73.

Another great Oil and Gas - Exploration and Production - International stock you could consider is Vermilion Energy (VET - Free Report) , which is a # 1 (Strong Buy) stock with a Value Score of A.

Vermilion Energy also has a P/B ratio of 0.83 compared to its industry's price-to-book ratio of 2.26. Over the past year, its P/B ratio has been as high as 1.82, as low as 0.63, with a median of 0.83.

These are just a handful of the figures considered in Vaalco Energy and Vermilion Energy's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that EGY and VET is an impressive value stock right now.


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