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Is Southwestern Energy (SWN) a Great Value Stock Right Now?

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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One stock to keep an eye on is Southwestern Energy (SWN - Free Report) . SWN is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 3.41, while its industry has an average P/E of 5.06. Over the last 12 months, SWN's Forward P/E has been as high as 5.96 and as low as 2.79, with a median of 3.75.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. SWN has a P/S ratio of 0.94. This compares to its industry's average P/S of 2.22.

Another great Oil and Gas - Exploration and Production - United States stock you could consider is Stone Energy (TALO - Free Report) , which is a # 1 (Strong Buy) stock with a Value Score of A.

Stone Energy sports a P/B ratio of 1.80 as well; this compares to its industry's price-to-book ratio of 3.19. In the past 52 weeks, TALO's P/B has been as high as 2.99, as low as 1.05, with a median of 1.54.

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

In-Depth Zacks Research for the Tickers Above

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Southwestern Energy Company (SWN) - free report >>

Talos Energy Inc. (TALO) - free report >>

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