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.
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.
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.
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.
APA (APA - Free Report) is a stock many investors are watching right now. APA is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 3.77 right now. For comparison, its industry sports an average P/E of 5.35. Over the past 52 weeks, APA's Forward P/E has been as high as 43.67 and as low as 3.73, with a median of 6.06.
We also note that APA holds a PEG ratio of 0.16. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. APA's industry has an average PEG of 0.17 right now. Within the past year, APA's PEG has been as high as 2.24 and as low as 0.09, with a median of 0.32.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. APA has a P/S ratio of 1.58. This compares to its industry's average P/S of 2.29.
Finally, our model also underscores that APA has a P/CF ratio of 3.84. 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. APA's P/CF compares to its industry's average P/CF of 11.11. APA's P/CF has been as high as 6.44 and as low as 2.77, with a median of 4.57, all within the past year.
Investors could also keep in mind Murphy Oil (MUR - Free Report) , an Oil and Gas - Exploration and Production - United States stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Additionally, Murphy Oil has a P/B ratio of 1.34 while its industry's price-to-book ratio sits at 3.37. For MUR, this valuation metric has been as high as 1.67, as low as 0.73, with a median of 1.08 over the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that APA and Murphy Oil are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, APA and MUR feels like a great value stock at the moment.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Should Value Investors Buy APA (APA) Stock?
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.
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.
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.
APA (APA - Free Report) is a stock many investors are watching right now. APA is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 3.77 right now. For comparison, its industry sports an average P/E of 5.35. Over the past 52 weeks, APA's Forward P/E has been as high as 43.67 and as low as 3.73, with a median of 6.06.
We also note that APA holds a PEG ratio of 0.16. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. APA's industry has an average PEG of 0.17 right now. Within the past year, APA's PEG has been as high as 2.24 and as low as 0.09, with a median of 0.32.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. APA has a P/S ratio of 1.58. This compares to its industry's average P/S of 2.29.
Finally, our model also underscores that APA has a P/CF ratio of 3.84. 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. APA's P/CF compares to its industry's average P/CF of 11.11. APA's P/CF has been as high as 6.44 and as low as 2.77, with a median of 4.57, all within the past year.
Investors could also keep in mind Murphy Oil (MUR - Free Report) , an Oil and Gas - Exploration and Production - United States stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Additionally, Murphy Oil has a P/B ratio of 1.34 while its industry's price-to-book ratio sits at 3.37. For MUR, this valuation metric has been as high as 1.67, as low as 0.73, with a median of 1.08 over the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that APA and Murphy Oil are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, APA and MUR feels like a great value stock at the moment.