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Are Investors Undervaluing Antero Resources (AR) 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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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 value investors might notice is Antero Resources (AR - Free Report) . AR is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 8.22. This compares to its industry's average Forward P/E of 10.55. Over the past 52 weeks, AR's Forward P/E has been as high as 77.08 and as low as 7.40, with a median of 13.63.
Investors will also notice that AR has a PEG ratio of 0.41. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. AR's industry has an average PEG of 0.70 right now. Over the past 52 weeks, AR's PEG has been as high as 3.85 and as low as 0.37, with a median of 0.68.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. AR has a P/S ratio of 1.06. This compares to its industry's average P/S of 1.97.
Finally, investors will want to recognize that AR has a P/CF ratio of 3.87. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 4.75. Within the past 12 months, AR's P/CF has been as high as 12.92 and as low as 3.72, with a median of 5.04.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Antero Resources is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, AR feels like a great value stock at the moment.
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Are Investors Undervaluing Antero Resources (AR) 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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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 value investors might notice is Antero Resources (AR - Free Report) . AR is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 8.22. This compares to its industry's average Forward P/E of 10.55. Over the past 52 weeks, AR's Forward P/E has been as high as 77.08 and as low as 7.40, with a median of 13.63.
Investors will also notice that AR has a PEG ratio of 0.41. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. AR's industry has an average PEG of 0.70 right now. Over the past 52 weeks, AR's PEG has been as high as 3.85 and as low as 0.37, with a median of 0.68.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. AR has a P/S ratio of 1.06. This compares to its industry's average P/S of 1.97.
Finally, investors will want to recognize that AR has a P/CF ratio of 3.87. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 4.75. Within the past 12 months, AR's P/CF has been as high as 12.92 and as low as 3.72, with a median of 5.04.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Antero Resources is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, AR feels like a great value stock at the moment.