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Should Value Investors Buy These Oils-Energy Stocks?
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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, 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.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One stock to keep an eye on is Civitas Resources (CIVI - Free Report) . CIVI is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 4.06 right now. For comparison, its industry sports an average P/E of 7.52. Over the past year, CIVI's Forward P/E has been as high as 9.31 and as low as 3.39, with a median of 5.26.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. CIVI has a P/S ratio of 1.84. This compares to its industry's average P/S of 2.44.
Finally, investors should note that CIVI has a P/CF ratio of 8.96. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 9.36. Within the past 12 months, CIVI's P/CF has been as high as 10.83 and as low as 3.34, with a median of 8.48.
Callon Petroleum may be another strong Oil and Gas - Exploration and Production - United States stock to add to your shortlist. CPE is a # 2 (Buy) stock with a Value grade of A.
Callon Petroleum is currently trading with a Forward P/E ratio of 3.79 while its PEG ratio sits at 1. Both of the company's metrics compare favorably to its industry's average P/E of 7.52 and average PEG ratio of 0.20.
Furthermore, Callon Petroleum holds a P/B ratio of 1.64 and its industry's price-to-book ratio is 2.87. CPE's P/B has been as high as 3.88, as low as 1.41, with a median of 2.31 over the past 12 months.
Value investors will likely look at more than just these metrics, but the above data helps show that Civitas Resources and Callon Petroleum are likely undervalued currently. And when considering the strength of its earnings outlook, CIVI and CPE sticks out as one of the market's strongest value stocks.
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Should Value Investors Buy These Oils-Energy Stocks?
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, 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.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One stock to keep an eye on is Civitas Resources (CIVI - Free Report) . CIVI is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 4.06 right now. For comparison, its industry sports an average P/E of 7.52. Over the past year, CIVI's Forward P/E has been as high as 9.31 and as low as 3.39, with a median of 5.26.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. CIVI has a P/S ratio of 1.84. This compares to its industry's average P/S of 2.44.
Finally, investors should note that CIVI has a P/CF ratio of 8.96. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 9.36. Within the past 12 months, CIVI's P/CF has been as high as 10.83 and as low as 3.34, with a median of 8.48.
Callon Petroleum may be another strong Oil and Gas - Exploration and Production - United States stock to add to your shortlist. CPE is a # 2 (Buy) stock with a Value grade of A.
Callon Petroleum is currently trading with a Forward P/E ratio of 3.79 while its PEG ratio sits at 1. Both of the company's metrics compare favorably to its industry's average P/E of 7.52 and average PEG ratio of 0.20.
Furthermore, Callon Petroleum holds a P/B ratio of 1.64 and its industry's price-to-book ratio is 2.87. CPE's P/B has been as high as 3.88, as low as 1.41, with a median of 2.31 over the past 12 months.
Value investors will likely look at more than just these metrics, but the above data helps show that Civitas Resources and Callon Petroleum are likely undervalued currently. And when considering the strength of its earnings outlook, CIVI and CPE sticks out as one of the market's strongest value stocks.