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Should Value Investors Buy Gulfport Energy (GPOR) 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.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One company value investors might notice is Gulfport Energy (GPOR - Free Report) . GPOR is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 7.64 right now. For comparison, its industry sports an average P/E of 14.75. Over the last 12 months, GPOR's Forward P/E has been as high as 9.90 and as low as 5.97, with a median of 8.05.

We also note that GPOR holds a PEG ratio of 0.38. 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 1 right now. Over the past 52 weeks, GPOR's PEG has been as high as 0.49 and as low as 0.20, with a median of 0.38.

Finally, investors should note that GPOR has a P/CF ratio of 2.19. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 7.17. Within the past 12 months, GPOR's P/CF has been as high as 7.44 and as low as 1.88, with a median of 2.44.

Value investors will likely look at more than just these metrics, but the above data helps show that Gulfport Energy is likely undervalued currently. And when considering the strength of its earnings outlook, GPOR sticks out at as one of the market's strongest value stocks.


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