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Is Whiting Petroleum (WLL) 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.

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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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 value investors might notice is Whiting Petroleum . WLL is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 9.46, which compares to its industry's average of 13.83. WLL's Forward P/E has been as high as 32.40 and as low as 5.93, with a median of 14.32, all within the past year.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. WLL has a P/S ratio of 1.1. This compares to its industry's average P/S of 1.42.

Finally, we should also recognize that WLL has a P/CF ratio of 1.86. 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. WLL's current P/CF looks attractive when compared to its industry's average P/CF of 4.81. Within the past 12 months, WLL's P/CF has been as high as 22.75 and as low as -29.06, with a median of 2.06.

These are only a few of the key metrics included in Whiting Petroleum's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, WLL looks like an impressive value stock at the moment.

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