We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
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 individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Are Investors Undervaluing Diamondback Energy (FANG) Right Now?
Read MoreHide Full Article
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.
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.
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.
One company value investors might notice is Diamondback Energy (FANG - Free Report) . FANG is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 5.48, while its industry has an average P/E of 6.36. Over the past 52 weeks, FANG's Forward P/E has been as high as 10.90 and as low as 5.10, with a median of 6.98.
Another valuation metric that we should highlight is FANG's P/B ratio of 1.74. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 3.84. Over the past year, FANG's P/B has been as high as 2 and as low as 1.03, with a median of 1.59.
Finally, investors should note that FANG has a P/CF ratio of 5.99. 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 12.70. 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 6.18.
Investors could also keep in mind SilverBow Resources (SBOW - Free Report) , an Oil and Gas - Exploration and Production - United States stock with a Zacks Rank of # 1 (Strong Buy) and Value grade of A.
Furthermore, SilverBow Resources holds a P/B ratio of 2.61 and its industry's price-to-book ratio is 3.84. SBOW's P/B has been as high as 5.26, as low as 1.13, with a median of 2.43 over the past 12 months.
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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Are Investors Undervaluing Diamondback Energy (FANG) 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.
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.
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.
One company value investors might notice is Diamondback Energy (FANG - Free Report) . FANG is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 5.48, while its industry has an average P/E of 6.36. Over the past 52 weeks, FANG's Forward P/E has been as high as 10.90 and as low as 5.10, with a median of 6.98.
Another valuation metric that we should highlight is FANG's P/B ratio of 1.74. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 3.84. Over the past year, FANG's P/B has been as high as 2 and as low as 1.03, with a median of 1.59.
Finally, investors should note that FANG has a P/CF ratio of 5.99. 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 12.70. 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 6.18.
Investors could also keep in mind SilverBow Resources (SBOW - Free Report) , an Oil and Gas - Exploration and Production - United States stock with a Zacks Rank of # 1 (Strong Buy) and Value grade of A.
Furthermore, SilverBow Resources holds a P/B ratio of 2.61 and its industry's price-to-book ratio is 3.84. SBOW's P/B has been as high as 5.26, as low as 1.13, with a median of 2.43 over the past 12 months.
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.