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Are Investors Undervaluing Murphy Oil (MUR) 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.

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.

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.

Murphy Oil (MUR - Free Report) is a stock many investors are watching right now. MUR is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 7.35, while its industry has an average P/E of 11.21. Over the past 52 weeks, MUR's Forward P/E has been as high as 234.97 and as low as -147.87, with a median of 24.04.

Another valuation metric that we should highlight is MUR's P/B ratio of 1.16. 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 attractive against its industry's average P/B of 1.99. Over the past year, MUR's P/B has been as high as 1.33 and as low as 0.92, with a median of 1.13.

Finally, our model also underscores that MUR has a P/CF ratio of 6.16. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 6.38. Over the past 52 weeks, MUR's P/CF has been as high as 8.52 and as low as 5.11, with a median of 6.37.

These are only a few of the key metrics included in Murphy Oil'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, MUR looks like an impressive value stock at the moment.


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