While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader 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.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
Centennial Resource Development is a stock many investors are watching right now. CDEV is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 3.57 right now. For comparison, its industry sports an average P/E of 6.57. CDEV's Forward P/E has been as high as 19.97 and as low as 3.36, with a median of 6.78, all within 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 prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. CDEV has a P/S ratio of 1.68. This compares to its industry's average P/S of 2.52.
Finally, investors will want to recognize that CDEV has a P/CF ratio of 5.23. 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. CDEV's current P/CF looks attractive when compared to its industry's average P/CF of 13.04. Over the past 52 weeks, CDEV's P/CF has been as high as 18.55 and as low as 4.36, with a median of 10.64.
Investors could also keep in mind Continental Resources , an Oil and Gas - Exploration and Production - United States stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Shares of Continental Resources currently holds a Forward P/E ratio of 5.70, and its PEG ratio is 0.16. In comparison, its industry sports average P/E and PEG ratios of 6.57 and 0.20.
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Is Centennial Resource Development (CDEV) Stock Undervalued Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader 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.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
Centennial Resource Development is a stock many investors are watching right now. CDEV is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 3.57 right now. For comparison, its industry sports an average P/E of 6.57. CDEV's Forward P/E has been as high as 19.97 and as low as 3.36, with a median of 6.78, all within 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 prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. CDEV has a P/S ratio of 1.68. This compares to its industry's average P/S of 2.52.
Finally, investors will want to recognize that CDEV has a P/CF ratio of 5.23. 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. CDEV's current P/CF looks attractive when compared to its industry's average P/CF of 13.04. Over the past 52 weeks, CDEV's P/CF has been as high as 18.55 and as low as 4.36, with a median of 10.64.
Investors could also keep in mind Continental Resources , an Oil and Gas - Exploration and Production - United States stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Shares of Continental Resources currently holds a Forward P/E ratio of 5.70, and its PEG ratio is 0.16. In comparison, its industry sports average P/E and PEG ratios of 6.57 and 0.20.