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Should Value Investors Buy Vermilion Energy (VET) Stock?

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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

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.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One stock to keep an eye on is Vermilion Energy (VET - Free Report) . VET is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.

We should also highlight that VET has a P/B ratio of 1.56. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 2.62. Over the past year, VET's P/B has been as high as 3.56 and as low as 1.48, with a median of 1.96.

Finally, investors should note that VET has a P/CF ratio of 4.46. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 7.36. Over the past 52 weeks, VET's P/CF has been as high as 14.13 and as low as 4.46, with a median of 9.46.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Vermilion Energy is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, VET feels like a great value stock at the moment.


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