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Should Value Investors Buy Gran Tierra Energy (GTE) Stock?
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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.
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company value investors might notice is Gran Tierra Energy (GTE - Free Report) . GTE is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 8.36 right now. For comparison, its industry sports an average P/E of 10.26. Over the past year, GTE's Forward P/E has been as high as 15.16 and as low as 6.03, with a median of 10.91.
Another notable valuation metric for GTE is its P/B ratio of 0.49. 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. GTE's current P/B looks attractive when compared to its industry's average P/B of 0.76. Within the past 52 weeks, GTE's P/B has been as high as 1.53 and as low as 0.44, with a median of 0.88.
Finally, we should also recognize that GTE has a P/CF ratio of 1.66. 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. GTE's current P/CF looks attractive when compared to its industry's average P/CF of 2.63. GTE's P/CF has been as high as 9.14 and as low as 1.50, with a median of 2.98, all within the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Gran Tierra Energy is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, GTE feels like a great value stock at the moment.
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Should Value Investors Buy Gran Tierra Energy (GTE) 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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company value investors might notice is Gran Tierra Energy (GTE - Free Report) . GTE is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 8.36 right now. For comparison, its industry sports an average P/E of 10.26. Over the past year, GTE's Forward P/E has been as high as 15.16 and as low as 6.03, with a median of 10.91.
Another notable valuation metric for GTE is its P/B ratio of 0.49. 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. GTE's current P/B looks attractive when compared to its industry's average P/B of 0.76. Within the past 52 weeks, GTE's P/B has been as high as 1.53 and as low as 0.44, with a median of 0.88.
Finally, we should also recognize that GTE has a P/CF ratio of 1.66. 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. GTE's current P/CF looks attractive when compared to its industry's average P/CF of 2.63. GTE's P/CF has been as high as 9.14 and as low as 1.50, with a median of 2.98, all within the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Gran Tierra Energy is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, GTE feels like a great value stock at the moment.