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Should Value Investors Buy Gulfport Energy (GPOR) 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.

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.

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 company to watch right now is Gulfport Energy (GPOR - Free Report) . GPOR is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 3.81 right now. For comparison, its industry sports an average P/E of 10.93. Over the past 52 weeks, GPOR's Forward P/E has been as high as 9.90 and as low as 3.59, with a median of 7.77.

Investors should also note that GPOR holds a PEG ratio of 0.28. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. GPOR's industry has an average PEG of 0.68 right now. Within the past year, GPOR's PEG has been as high as 0.52 and as low as 0.20, with a median of 0.40.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. GPOR has a P/S ratio of 0.9. This compares to its industry's average P/S of 1.46.

Finally, we should also recognize that GPOR has a P/CF ratio of 1.30. 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 stock's P/CF looks attractive against its industry's average P/CF of 3.99. Within the past 12 months, GPOR's P/CF has been as high as 3.07 and as low as 1.18, with a median of 2.26.

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


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