Back to top

Image: Bigstock

Is Matador Resources (MTDR) a Great Value Stock Right Now?

Read MoreHide Full Article

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.

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 use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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 to watch right now is Matador Resources (MTDR - Free Report) . MTDR is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 5.20, which compares to its industry's average of 5.42. Over the past year, MTDR's Forward P/E has been as high as 10.48 and as low as 4.23, with a median of 6.78.

Investors should also recognize that MTDR has a P/B ratio of 2.24. 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. MTDR's current P/B looks attractive when compared to its industry's average P/B of 3.32. Within the past 52 weeks, MTDR's P/B has been as high as 3.36 and as low as 1.76, with a median of 2.49.

Finally, we should also recognize that MTDR has a P/CF ratio of 4.33. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 10.97. Over the past year, MTDR's P/CF has been as high as 30.98 and as low as 3.62, with a median of 6.70.

SilverBow Resources (SBOW - Free Report) may be another strong Oil and Gas - Exploration and Production - United States stock to add to your shortlist. SBOW is a # 2 (Buy) stock with a Value grade of A.

SilverBow Resources sports a P/B ratio of 3.17 as well; this compares to its industry's price-to-book ratio of 3.32. In the past 52 weeks, SBOW's P/B has been as high as 5.26, as low as 1.13, with a median of 2.61.

These are only a few of the key metrics included in Matador Resources and SilverBow Resources strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, MTDR and SBOW look like an impressive value stock at the moment.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Matador Resources Company (MTDR) - free report >>

SilverBow Resources (SBOW) - free report >>

Published in