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Is Civitas Resources (CIVI) Stock Undervalued Right Now?

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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.

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.

One company value investors might notice is Civitas Resources (CIVI - Free Report) . CIVI is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 3.92. This compares to its industry's average Forward P/E of 5.27. Over the past year, CIVI's Forward P/E has been as high as 9.31 and as low as 3.13, with a median of 4.66.

Finally, investors should note that CIVI has a P/CF ratio of 7.03. 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. CIVI's current P/CF looks attractive when compared to its industry's average P/CF of 10.96. Over the past year, CIVI's P/CF has been as high as 10.72 and as low as 5.98, with a median of 8.49.

Investors could also keep in mind PDC Energy (PDCE - Free Report) , an Oil and Gas - Exploration and Production - United States stock with a Zacks Rank of # 2 (Buy) and Value grade of A.

PDC Energy also has a P/B ratio of 2.18 compared to its industry's price-to-book ratio of 3.32. Over the past year, its P/B ratio has been as high as 2.97, as low as 1.44, with a median of 1.99.

Value investors will likely look at more than just these metrics, but the above data helps show that Civitas Resources and PDC Energy are likely undervalued currently. And when considering the strength of its earnings outlook, CIVI and PDCE sticks out as one of the market's strongest value stocks.


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