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Is HighPeak Energy (HPK) Stock Undervalued 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 use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One stock to keep an eye on is HighPeak Energy (HPK - Free Report) . HPK is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 7.64. This compares to its industry's average Forward P/E of 10.30. Over the past year, HPK's Forward P/E has been as high as 11.44 and as low as 4.12, with a median of 6.26.
Another valuation metric that we should highlight is HPK's P/B ratio of 1.16. 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 2.39. Over the past 12 months, HPK's P/B has been as high as 1.63 and as low as 0.98, with a median of 1.28.
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. HPK has a P/S ratio of 1.52. This compares to its industry's average P/S of 2.04.
Finally, investors will want to recognize that HPK has a P/CF ratio of 2.72. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. HPK's P/CF compares to its industry's average P/CF of 7.54. Within the past 12 months, HPK's P/CF has been as high as 3.89 and as low as 2.17, with a median of 2.99.
These figures are just a handful of the metrics value investors tend to look at, but they help show that HighPeak Energy is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, HPK feels like a great value stock at the moment.
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Is HighPeak Energy (HPK) Stock Undervalued 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 use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One stock to keep an eye on is HighPeak Energy (HPK - Free Report) . HPK is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 7.64. This compares to its industry's average Forward P/E of 10.30. Over the past year, HPK's Forward P/E has been as high as 11.44 and as low as 4.12, with a median of 6.26.
Another valuation metric that we should highlight is HPK's P/B ratio of 1.16. 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 2.39. Over the past 12 months, HPK's P/B has been as high as 1.63 and as low as 0.98, with a median of 1.28.
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. HPK has a P/S ratio of 1.52. This compares to its industry's average P/S of 2.04.
Finally, investors will want to recognize that HPK has a P/CF ratio of 2.72. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. HPK's P/CF compares to its industry's average P/CF of 7.54. Within the past 12 months, HPK's P/CF has been as high as 3.89 and as low as 2.17, with a median of 2.99.
These figures are just a handful of the metrics value investors tend to look at, but they help show that HighPeak Energy is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, HPK feels like a great value stock at the moment.