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Should Value Investors Buy Riley Exploration Permian (REPX) Stock?
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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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.
One stock to keep an eye on is Riley Exploration Permian (REPX - Free Report) . REPX is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock has a Forward P/E ratio of 3.28. This compares to its industry's average Forward P/E of 8.11. Over the last 12 months, REPX's Forward P/E has been as high as 5.56 and as low as 2.88, with a median of 3.92.
We should also highlight that REPX has a P/B ratio of 1.59. 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 2.48. Over the past 12 months, REPX's P/B has been as high as 2.61 and as low as 1.43, with a median of 1.94.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. REPX has a P/S ratio of 1.49. This compares to its industry's average P/S of 1.82.
Finally, we should also recognize that REPX has a P/CF ratio of 4.04. 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 4.56. REPX's P/CF has been as high as 5.80 and as low as 3.86, with a median of 4.71, all within the past year.
Investors could also keep in mind W&T Offshore (WTI - Free Report) , an Oil and Gas - Exploration and Production - United States stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Additionally, W&T Offshore has a P/B ratio of 22.51 while its industry's price-to-book ratio sits at 2.48. For WTI, this valuation metric has been as high as 121.90, as low as -23.39, with a median of 23.93 over the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Riley Exploration Permian and W&T Offshore are likely undervalued currently. And when considering the strength of its earnings outlook, REPX and WTI sticks out as one of the market's strongest value stocks.
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Should Value Investors Buy Riley Exploration Permian (REPX) Stock?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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.
One stock to keep an eye on is Riley Exploration Permian (REPX - Free Report) . REPX is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock has a Forward P/E ratio of 3.28. This compares to its industry's average Forward P/E of 8.11. Over the last 12 months, REPX's Forward P/E has been as high as 5.56 and as low as 2.88, with a median of 3.92.
We should also highlight that REPX has a P/B ratio of 1.59. 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 2.48. Over the past 12 months, REPX's P/B has been as high as 2.61 and as low as 1.43, with a median of 1.94.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. REPX has a P/S ratio of 1.49. This compares to its industry's average P/S of 1.82.
Finally, we should also recognize that REPX has a P/CF ratio of 4.04. 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 4.56. REPX's P/CF has been as high as 5.80 and as low as 3.86, with a median of 4.71, all within the past year.
Investors could also keep in mind W&T Offshore (WTI - Free Report) , an Oil and Gas - Exploration and Production - United States stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Additionally, W&T Offshore has a P/B ratio of 22.51 while its industry's price-to-book ratio sits at 2.48. For WTI, this valuation metric has been as high as 121.90, as low as -23.39, with a median of 23.93 over the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Riley Exploration Permian and W&T Offshore are likely undervalued currently. And when considering the strength of its earnings outlook, REPX and WTI sticks out as one of the market's strongest value stocks.