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Is Chesapeake Energy (CHK) a Great Value Stock Right Now?
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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find 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 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 Chesapeake Energy (CHK - Free Report) . CHK 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 5.36 right now. For comparison, its industry sports an average P/E of 12.49. Over the past year, CHK's Forward P/E has been as high as 6.89 and as low as 3.08, with a median of 5.
CHK is also sporting a PEG ratio of 0.59. 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. CHK's industry currently sports an average PEG of 0.84. Over the past 52 weeks, CHK's PEG has been as high as 0.62 and as low as 0.43, with a median of 0.49.
Finally, we should also recognize that CHK has a P/CF ratio of 2.36. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 6.61. Over the past year, CHK's P/CF has been as high as 3.15 and as low as 1.42, with a median of 2.32.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Chesapeake Energy is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CHK feels like a great value stock at the moment.
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Is Chesapeake Energy (CHK) a Great Value Stock Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find 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 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 Chesapeake Energy (CHK - Free Report) . CHK 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 5.36 right now. For comparison, its industry sports an average P/E of 12.49. Over the past year, CHK's Forward P/E has been as high as 6.89 and as low as 3.08, with a median of 5.
CHK is also sporting a PEG ratio of 0.59. 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. CHK's industry currently sports an average PEG of 0.84. Over the past 52 weeks, CHK's PEG has been as high as 0.62 and as low as 0.43, with a median of 0.49.
Finally, we should also recognize that CHK has a P/CF ratio of 2.36. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 6.61. Over the past year, CHK's P/CF has been as high as 3.15 and as low as 1.42, with a median of 2.32.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Chesapeake Energy is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CHK feels like a great value stock at the moment.