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Should Value Investors Buy Vermilion Energy (VET) Stock?

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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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 Vermilion Energy (VET - Free Report) . VET is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.

Investors should also recognize that VET has a P/B ratio of 1.58. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 2.66. VET's P/B has been as high as 2.76 and as low as 1.48, with a median of 1.86, over the past year.

Finally, investors should note that VET has a P/CF ratio of 4.51. 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 stock's P/CF looks attractive against its industry's average P/CF of 7.46. Over the past 52 weeks, VET's P/CF has been as high as 14.13 and as low as 4.24, with a median of 5.97.

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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