You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating indiv idual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Is Diamondback Energy (FANG) a Great Value Stock Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore 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 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.
One company to watch right now is Diamondback Energy (FANG - Free Report) . FANG is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 6.46 right now. For comparison, its industry sports an average P/E of 7.49. Over the past year, FANG's Forward P/E has been as high as 10.90 and as low as 5.49, with a median of 7.09.
Another notable valuation metric for FANG is its P/B ratio of 1.90. 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 attractive against its industry's average P/B of 3.49. Within the past 52 weeks, FANG's P/B has been as high as 2 and as low as 1.03, with a median of 1.53.
Finally, we should also recognize that FANG has a P/CF ratio of 7.43. 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. FANG's current P/CF looks attractive when compared to its industry's average P/CF of 10.96. Within the past 12 months, FANG's P/CF has been as high as 12.67 and as low as -118.46, with a median of 6.52.
Another great Oil and Gas - Exploration and Production - United States stock you could consider is SilverBow Resources (SBOW - Free Report) , which is a # 1 (Strong Buy) stock with a Value Score of A.
SilverBow Resources sports a P/B ratio of 2.24 as well; this compares to its industry's price-to-book ratio of 3.49. In the past 52 weeks, SBOW's P/B has been as high as 5.26, as low as 0.81, with a median of 2.21.
These are only a few of the key metrics included in Diamondback Energy and SilverBow Resources strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, FANG and SBOW look like an impressive value stock at the moment.