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Is Equinor (EQNR) a Great Value Stock Right Now?

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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.

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 company value investors might notice is Equinor (EQNR - Free Report) . EQNR is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. EQNR has a P/S ratio of 0.96. This compares to its industry's average P/S of 1.83.

Finally, our model also underscores that EQNR has a P/CF ratio of 3.87. 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. EQNR's current P/CF looks attractive when compared to its industry's average P/CF of 8.42. EQNR's P/CF has been as high as 4.61 and as low as 1.95, with a median of 3.62, all within the past year.

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


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