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Should Value Investors Buy Geopark (GPRK) Stock?

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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.

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.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One company to watch right now is Geopark (GPRK - Free Report) . GPRK is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 3.58 right now. For comparison, its industry sports an average P/E of 7.15. Over the past year, GPRK's Forward P/E has been as high as 12.53 and as low as 2.07, with a median of 3.44.

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. GPRK has a P/S ratio of 1.35. This compares to its industry's average P/S of 2.94.

Finally, our model also underscores that GPRK has a P/CF ratio of 5.56. 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. GPRK's current P/CF looks attractive when compared to its industry's average P/CF of 14.55. Over the past year, GPRK's P/CF has been as high as 1,745.03 and as low as -21.27, with a median of 5.32.

Oasis Petroleum may be another strong Oil and Gas - Exploration and Production - United States stock to add to your shortlist. OAS is a # 2 (Buy) stock with a Value grade of A.

Oasis Petroleum sports a P/B ratio of 2.43 as well; this compares to its industry's price-to-book ratio of 4.41. In the past 52 weeks, OAS's P/B has been as high as 2.50, as low as 1.57, with a median of 2.04.

These are just a handful of the figures considered in Geopark and Oasis Petroleum's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that GPRK and OAS is an impressive value stock right now.


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