We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader 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.
APA (APA - Free Report) is a stock many investors are watching right now. APA is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 5.84 right now. For comparison, its industry sports an average P/E of 10.78. Over the past 52 weeks, APA's Forward P/E has been as high as 9.67 and as low as 5.14, with a median of 6.51.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by 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. APA has a P/S ratio of 1.39. This compares to its industry's average P/S of 2.07.
Finally, we should also recognize that APA has a P/CF ratio of 2.08. 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. APA's current P/CF looks attractive when compared to its industry's average P/CF of 7.89. Within the past 12 months, APA's P/CF has been as high as 4.91 and as low as 2.01, with a median of 3.27.
These are only a few of the key metrics included in APA's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, APA looks like an impressive value stock at the moment.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Should Value Investors Buy APA (APA) Stock?
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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader 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.
APA (APA - Free Report) is a stock many investors are watching right now. APA is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 5.84 right now. For comparison, its industry sports an average P/E of 10.78. Over the past 52 weeks, APA's Forward P/E has been as high as 9.67 and as low as 5.14, with a median of 6.51.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by 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. APA has a P/S ratio of 1.39. This compares to its industry's average P/S of 2.07.
Finally, we should also recognize that APA has a P/CF ratio of 2.08. 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. APA's current P/CF looks attractive when compared to its industry's average P/CF of 7.89. Within the past 12 months, APA's P/CF has been as high as 4.91 and as low as 2.01, with a median of 3.27.
These are only a few of the key metrics included in APA's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, APA looks like an impressive value stock at the moment.