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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.
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 Apache (APA - Free Report) . APA is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.
Another notable valuation metric for APA is its P/B ratio of 1.59. 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. This company's current P/B looks solid when compared to its industry's average P/B of 1.76. Over the past year, APA's P/B has been as high as 2.11 and as low as 1.48, with a median of 1.84.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. APA has a P/S ratio of 1.89. This compares to its industry's average P/S of 2.04.
Finally, our model also underscores that APA has a P/CF ratio of 4.43. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. APA's P/CF compares to its industry's average P/CF of 5.37. APA's P/CF has been as high as 5.94 and as low as 3.65, with a median of 4.99, 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 Apache is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, APA feels like a great value stock at the moment.
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Should Value Investors Buy Apache (APA) Stock?
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.
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 Apache (APA - Free Report) . APA is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.
Another notable valuation metric for APA is its P/B ratio of 1.59. 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. This company's current P/B looks solid when compared to its industry's average P/B of 1.76. Over the past year, APA's P/B has been as high as 2.11 and as low as 1.48, with a median of 1.84.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. APA has a P/S ratio of 1.89. This compares to its industry's average P/S of 2.04.
Finally, our model also underscores that APA has a P/CF ratio of 4.43. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. APA's P/CF compares to its industry's average P/CF of 5.37. APA's P/CF has been as high as 5.94 and as low as 3.65, with a median of 4.99, 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 Apache is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, APA feels like a great value stock at the moment.