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, 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 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 to watch right now is Laredo Petroleum . LPI is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.
Investors should also recognize that LPI has a P/B ratio of 2.60. 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. LPI's current P/B looks attractive when compared to its industry's average P/B of 3.96. LPI's P/B has been as high as 7.01 and as low as -23.72, with a median of -5.50, over the past year.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. LPI has a P/S ratio of 1.03. This compares to its industry's average P/S of 2.91.
Finally, investors will want to recognize that LPI has a P/CF ratio of 3.48. 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 10.62. Over the past 52 weeks, LPI's P/CF has been as high as 3.48 and as low as -29.54, with a median of -1.17.
If you're looking for another solid Oil and Gas - Exploration and Production - United States value stock, take a look at Oasis Petroleum . OAS is a # 2 (Buy) stock with a Value score of A.
Oasis Petroleum also has a P/B ratio of 2.16 compared to its industry's price-to-book ratio of 3.96. Over the past year, its P/B ratio has been as high as 2.41, as low as 1.24, with a median of 1.95.
Value investors will likely look at more than just these metrics, but the above data helps show that Laredo Petroleum and Oasis Petroleum are likely undervalued currently. And when considering the strength of its earnings outlook, LPI and OAS sticks out as one of the market's strongest value stocks.
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Are Investors Undervaluing These Oils-Energy Stocks Right Now?
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, 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 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 to watch right now is Laredo Petroleum . LPI is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.
Investors should also recognize that LPI has a P/B ratio of 2.60. 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. LPI's current P/B looks attractive when compared to its industry's average P/B of 3.96. LPI's P/B has been as high as 7.01 and as low as -23.72, with a median of -5.50, over the past year.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. LPI has a P/S ratio of 1.03. This compares to its industry's average P/S of 2.91.
Finally, investors will want to recognize that LPI has a P/CF ratio of 3.48. 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 10.62. Over the past 52 weeks, LPI's P/CF has been as high as 3.48 and as low as -29.54, with a median of -1.17.
If you're looking for another solid Oil and Gas - Exploration and Production - United States value stock, take a look at Oasis Petroleum . OAS is a # 2 (Buy) stock with a Value score of A.
Oasis Petroleum also has a P/B ratio of 2.16 compared to its industry's price-to-book ratio of 3.96. Over the past year, its P/B ratio has been as high as 2.41, as low as 1.24, with a median of 1.95.
Value investors will likely look at more than just these metrics, but the above data helps show that Laredo Petroleum and Oasis Petroleum are likely undervalued currently. And when considering the strength of its earnings outlook, LPI and OAS sticks out as one of the market's strongest value stocks.