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Is Geopark (GPRK) Stock Undervalued Right Now?

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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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. 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 stock to keep an eye on is Geopark (GPRK - Free Report) . GPRK is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock holds a P/E ratio of 3.25, while its industry has an average P/E of 5.82. Over the past 52 weeks, GPRK's Forward P/E has been as high as 12.53 and as low as 2.07, with a median of 3.58.

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. GPRK has a P/S ratio of 1.36. This compares to its industry's average P/S of 2.55.

Finally, we should also recognize that GPRK has a P/CF ratio of 6.51. 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 stock's P/CF looks attractive against its industry's average P/CF of 9.74. Within the past 12 months, GPRK's P/CF has been as high as 1,745.03 and as low as -21.27, with a median of 5.59.

Oasis Petroleum may be another strong Oil and Gas - Exploration and Production - United States stock to add to your shortlist. OAS is a # 1 (Strong Buy) stock with a Value grade of A.

Additionally, Oasis Petroleum has a P/B ratio of 2.08 while its industry's price-to-book ratio sits at 3.10. For OAS, this valuation metric has been as high as 2.50, as low as 1.49, with a median of 2.08 over the past year.

These are only a few of the key metrics included in Geopark and Oasis Petroleum strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, GPRK and OAS look like an impressive value stock at the moment.


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