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Is SilverBow Resources (SBOW) a Great Value Stock Right Now?
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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.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. 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 to watch right now is SilverBow Resources . SBOW is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock holds a P/E ratio of 2.93, while its industry has an average P/E of 6.42. Over the past year, SBOW's Forward P/E has been as high as 5.16 and as low as 2.04, with a median of 2.90.
Investors should also recognize that SBOW has a P/B ratio of 3.15. The P/B ratio is used to compare a stock's market value with 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 3.99. Over the past 12 months, SBOW's P/B has been as high as 5.26 and as low as 1.13, with a median of 2.54.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. SBOW has a P/S ratio of 1.49. This compares to its industry's average P/S of 2.63.
Finally, our model also underscores that SBOW has a P/CF ratio of 9.97. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. SBOW's P/CF compares to its industry's average P/CF of 13.16. Over the past 52 weeks, SBOW's P/CF has been as high as 11.15 and as low as -1.42, with a median of 4.01.
Southwestern Energy (SWN - Free Report) may be another strong Oil and Gas - Exploration and Production - United States stock to add to your shortlist. SWN is a # 2 (Buy) stock with a Value grade of A.
Southwestern Energy sports a P/B ratio of -80.66 as well; this compares to its industry's price-to-book ratio of 3.99. In the past 52 weeks, SWN's P/B has been as high as 6.60, as low as -221.16, with a median of -18.56.
These are only a few of the key metrics included in SilverBow Resources and Southwestern Energy strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, SBOW and SWN look like an impressive value stock at the moment.
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Is SilverBow Resources (SBOW) a Great Value Stock Right Now?
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.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. 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 to watch right now is SilverBow Resources . SBOW is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock holds a P/E ratio of 2.93, while its industry has an average P/E of 6.42. Over the past year, SBOW's Forward P/E has been as high as 5.16 and as low as 2.04, with a median of 2.90.
Investors should also recognize that SBOW has a P/B ratio of 3.15. The P/B ratio is used to compare a stock's market value with 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 3.99. Over the past 12 months, SBOW's P/B has been as high as 5.26 and as low as 1.13, with a median of 2.54.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. SBOW has a P/S ratio of 1.49. This compares to its industry's average P/S of 2.63.
Finally, our model also underscores that SBOW has a P/CF ratio of 9.97. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. SBOW's P/CF compares to its industry's average P/CF of 13.16. Over the past 52 weeks, SBOW's P/CF has been as high as 11.15 and as low as -1.42, with a median of 4.01.
Southwestern Energy (SWN - Free Report) may be another strong Oil and Gas - Exploration and Production - United States stock to add to your shortlist. SWN is a # 2 (Buy) stock with a Value grade of A.
Southwestern Energy sports a P/B ratio of -80.66 as well; this compares to its industry's price-to-book ratio of 3.99. In the past 52 weeks, SWN's P/B has been as high as 6.60, as low as -221.16, with a median of -18.56.
These are only a few of the key metrics included in SilverBow Resources and Southwestern Energy strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, SBOW and SWN look like an impressive value stock at the moment.