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Is PDC Energy (PDCE) 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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company value investors might notice is PDC Energy . PDCE is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock is trading with a P/E ratio of 3.16, which compares to its industry's average of 5.17. Over the past 52 weeks, PDCE's Forward P/E has been as high as 9.01 and as low as 3.06, with a median of 5.61.
We should also highlight that PDCE has a P/B ratio of 2.11. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. PDCE's current P/B looks attractive when compared to its industry's average P/B of 3.23. PDCE's P/B has been as high as 2.97 and as low as 1.44, with a median of 1.97, over the past year.
Finally, we should also recognize that PDCE has a P/CF ratio of 5.08. 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 stock's P/CF looks attractive against its industry's average P/CF of 10.68. PDCE's P/CF has been as high as 10.08 and as low as 4.08, with a median of 6.79, all within the past year.
If you're looking for another solid Oil and Gas - Exploration and Production - United States value stock, take a look at SM Energy (SM - Free Report) . SM is a # 2 (Buy) stock with a Value score of A.
SM Energy also has a P/B ratio of 1.96 compared to its industry's price-to-book ratio of 3.23. Over the past year, its P/B ratio has been as high as 3.13, as low as 1.19, with a median of 2.11.
Value investors will likely look at more than just these metrics, but the above data helps show that PDC Energy and SM Energy are likely undervalued currently. And when considering the strength of its earnings outlook, PDCE and SM sticks out as one of the market's strongest value stocks.
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Is PDC Energy (PDCE) 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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company value investors might notice is PDC Energy . PDCE is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock is trading with a P/E ratio of 3.16, which compares to its industry's average of 5.17. Over the past 52 weeks, PDCE's Forward P/E has been as high as 9.01 and as low as 3.06, with a median of 5.61.
We should also highlight that PDCE has a P/B ratio of 2.11. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. PDCE's current P/B looks attractive when compared to its industry's average P/B of 3.23. PDCE's P/B has been as high as 2.97 and as low as 1.44, with a median of 1.97, over the past year.
Finally, we should also recognize that PDCE has a P/CF ratio of 5.08. 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 stock's P/CF looks attractive against its industry's average P/CF of 10.68. PDCE's P/CF has been as high as 10.08 and as low as 4.08, with a median of 6.79, all within the past year.
If you're looking for another solid Oil and Gas - Exploration and Production - United States value stock, take a look at SM Energy (SM - Free Report) . SM is a # 2 (Buy) stock with a Value score of A.
SM Energy also has a P/B ratio of 1.96 compared to its industry's price-to-book ratio of 3.23. Over the past year, its P/B ratio has been as high as 3.13, as low as 1.19, with a median of 2.11.
Value investors will likely look at more than just these metrics, but the above data helps show that PDC Energy and SM Energy are likely undervalued currently. And when considering the strength of its earnings outlook, PDCE and SM sticks out as one of the market's strongest value stocks.