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.
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 SilverBow Resources . SBOW is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 4.40, while its industry has an average P/E of 11.21. Over the past 52 weeks, SBOW's Forward P/E has been as high as 5.61 and as low as 2.32, with a median of 4.40.
Another notable valuation metric for SBOW is its P/B ratio of 1.34. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 1.53. Over the past year, SBOW's P/B has been as high as 1.96 and as low as 1.16, with a median of 1.65.
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. SBOW has a P/S ratio of 1.31. This compares to its industry's average P/S of 1.57.
Finally, we should also recognize that SBOW has a P/CF ratio of 2.82. 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. SBOW's current P/CF looks attractive when compared to its industry's average P/CF of 4.16. SBOW's P/CF has been as high as 3.56 and as low as 2.46, with a median of 3, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that SilverBow Resources is likely undervalued currently. And when considering the strength of its earnings outlook, SBOW sticks out at as one of the market's strongest value stocks.
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Is SilverBow Resources (SBOW) Stock Undervalued 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.
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 SilverBow Resources . SBOW is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 4.40, while its industry has an average P/E of 11.21. Over the past 52 weeks, SBOW's Forward P/E has been as high as 5.61 and as low as 2.32, with a median of 4.40.
Another notable valuation metric for SBOW is its P/B ratio of 1.34. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 1.53. Over the past year, SBOW's P/B has been as high as 1.96 and as low as 1.16, with a median of 1.65.
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. SBOW has a P/S ratio of 1.31. This compares to its industry's average P/S of 1.57.
Finally, we should also recognize that SBOW has a P/CF ratio of 2.82. 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. SBOW's current P/CF looks attractive when compared to its industry's average P/CF of 4.16. SBOW's P/CF has been as high as 3.56 and as low as 2.46, with a median of 3, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that SilverBow Resources is likely undervalued currently. And when considering the strength of its earnings outlook, SBOW sticks out at as one of the market's strongest value stocks.