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Are Investors Undervaluing Geopark (GPRK) Right Now?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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 Geopark (GPRK - Free Report) . GPRK is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's 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. GPRK has a P/S ratio of 0.8. This compares to its industry's average P/S of 2.03.

Finally, investors will want to recognize that GPRK has a P/CF ratio of 2.47. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. GPRK's P/CF compares to its industry's average P/CF of 7.66. Within the past 12 months, GPRK's P/CF has been as high as 2.62 and as low as 1.79, with a median of 2.12.

Investors could also keep in mind Matador Resources (MTDR - Free Report) , an Oil and Gas - Exploration and Production - United States stock with a Zacks Rank of # 2 (Buy) and Value grade of A.

Furthermore, Matador Resources holds a P/B ratio of 1.57 and its industry's price-to-book ratio is 2.43. MTDR's P/B has been as high as 2.13, as low as 1.50, with a median of 1.77 over the past 12 months.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Geopark and Matador Resources are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, GPRK and MTDR feels like a great value stock at the moment.


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