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Is Southwestern Energy (SWN) Stock Undervalued Right Now?
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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 Southwestern Energy (SWN - Free Report) . SWN is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 15.66. This compares to its industry's average Forward P/E of 18.95. Over the past year, SWN's Forward P/E has been as high as 16.15 and as low as 2.80, with a median of 5.04.
Investors will also notice that SWN has a PEG ratio of 0.66. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. SWN's PEG compares to its industry's average PEG of 1.61. Over the last 12 months, SWN's PEG has been as high as 0.76 and as low as 0.31, with a median of 0.48.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Southwestern Energy is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, SWN feels like a great value stock at the moment.
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Is Southwestern Energy (SWN) Stock Undervalued Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 Southwestern Energy (SWN - Free Report) . SWN is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 15.66. This compares to its industry's average Forward P/E of 18.95. Over the past year, SWN's Forward P/E has been as high as 16.15 and as low as 2.80, with a median of 5.04.
Investors will also notice that SWN has a PEG ratio of 0.66. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. SWN's PEG compares to its industry's average PEG of 1.61. Over the last 12 months, SWN's PEG has been as high as 0.76 and as low as 0.31, with a median of 0.48.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Southwestern Energy is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, SWN feels like a great value stock at the moment.