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Are Investors Undervaluing Vermilion Energy (VET) 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.

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 Vermilion Energy (VET - Free Report) . VET is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.

We should also highlight that VET has a P/B ratio of 1.54. 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 stock's P/B looks solid versus its industry's average P/B of 2.61. Within the past 52 weeks, VET's P/B has been as high as 3.56 and as low as 1.48, with a median of 1.91.

Finally, investors should note that VET has a P/CF ratio of 4.40. 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. VET's P/CF compares to its industry's average P/CF of 7.32. VET's P/CF has been as high as 14.13 and as low as 4.24, with a median of 8.28, all within the past year.

These are just a handful of the figures considered in Vermilion Energy's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that VET is an impressive value stock right now.


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