Is Matador Resources (MTDR) Stock Undervalued Right Now?

MTDR

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.

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 Matador Resources (MTDR - Free Report) . MTDR is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 5.86 right now. For comparison, its industry sports an average P/E of 7.69. Over the last 12 months, MTDR's Forward P/E has been as high as 8.30 and as low as 4.91, with a median of 6.62.

Another notable valuation metric for MTDR is its P/B ratio of 1.66. 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 stock's P/B looks attractive against its industry's average P/B of 2.24. Over the past 12 months, MTDR's P/B has been as high as 2.45 and as low as 1.46, with a median of 1.84.

Finally, our model also underscores that MTDR has a P/CF ratio of 4.39. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 4.76. Over the past 52 weeks, MTDR's P/CF has been as high as 5.42 and as low as 3.05, with a median of 4.29.

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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