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Should Value Investors Buy Matador Resources (MTDR) 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.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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.
Matador Resources (MTDR - Free Report) is a stock many investors are watching right now. MTDR is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 11.47. This compares to its industry's average Forward P/E of 19.55. Over the past 52 weeks, MTDR's Forward P/E has been as high as 16.85 and as low as 8.68, with a median of 11.73.
MTDR is also sporting a PEG ratio of 1.59. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. MTDR's industry currently sports an average PEG of 1.66. Over the last 12 months, MTDR's PEG has been as high as 3.08 and as low as 0.49, with a median of 0.64.
We should also highlight that MTDR has a P/B ratio of 0.98. 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 solid versus its industry's average P/B of 1.89. Within the past 52 weeks, MTDR's P/B has been as high as 1.42 and as low as 0.76, with a median of 1.10.
Finally, our model also underscores that MTDR has a P/CF ratio of 3.59. 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 5.44. Over the past year, MTDR's P/CF has been as high as 5.20 and as low as 2.77, with a median of 4.01.
Value investors will likely look at more than just these metrics, but the above data helps show that Matador Resources is likely undervalued currently. And when considering the strength of its earnings outlook, MTDR sticks out at as one of the market's strongest value stocks.
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Should Value Investors Buy Matador Resources (MTDR) Stock?
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.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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.
Matador Resources (MTDR - Free Report) is a stock many investors are watching right now. MTDR is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 11.47. This compares to its industry's average Forward P/E of 19.55. Over the past 52 weeks, MTDR's Forward P/E has been as high as 16.85 and as low as 8.68, with a median of 11.73.
MTDR is also sporting a PEG ratio of 1.59. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. MTDR's industry currently sports an average PEG of 1.66. Over the last 12 months, MTDR's PEG has been as high as 3.08 and as low as 0.49, with a median of 0.64.
We should also highlight that MTDR has a P/B ratio of 0.98. 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 solid versus its industry's average P/B of 1.89. Within the past 52 weeks, MTDR's P/B has been as high as 1.42 and as low as 0.76, with a median of 1.10.
Finally, our model also underscores that MTDR has a P/CF ratio of 3.59. 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 5.44. Over the past year, MTDR's P/CF has been as high as 5.20 and as low as 2.77, with a median of 4.01.
Value investors will likely look at more than just these metrics, but the above data helps show that Matador Resources is likely undervalued currently. And when considering the strength of its earnings outlook, MTDR sticks out at as one of the market's strongest value stocks.