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Is Vaalco Energy (EGY) Stock Undervalued Right Now?
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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 stock to keep an eye on is Vaalco Energy (EGY - Free Report) . EGY is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock holds a P/E ratio of 1.89, while its industry has an average P/E of 3.56. Over the past year, EGY's Forward P/E has been as high as 4.04 and as low as 1.62, with a median of 2.38.
Another notable valuation metric for EGY is its P/B ratio of 2.12. 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 stock's P/B looks solid versus its industry's average P/B of 4.75. Over the past year, EGY's P/B has been as high as 3.33 and as low as 1.32, with a median of 2.05.
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. EGY has a P/S ratio of 1.53. This compares to its industry's average P/S of 1.56.
Finally, our model also underscores that EGY has a P/CF ratio of 3.15. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 5.73. Over the past 52 weeks, EGY's P/CF has been as high as 5.14 and as low as 1.84, with a median of 3.59.
Vermilion Energy (VET - Free Report) may be another strong Oil and Gas - Exploration and Production - International stock to add to your shortlist. VET is a # 1 (Strong Buy) stock with a Value grade of A.
Vermilion Energy sports a P/B ratio of 2.24 as well; this compares to its industry's price-to-book ratio of 4.75. In the past 52 weeks, VET's P/B has been as high as 2.32, as low as 0.61, with a median of 1.53.
These are only a few of the key metrics included in Vaalco Energy and Vermilion 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, EGY and VET look like an impressive value stock at the moment.
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Is Vaalco Energy (EGY) Stock Undervalued Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 stock to keep an eye on is Vaalco Energy (EGY - Free Report) . EGY is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock holds a P/E ratio of 1.89, while its industry has an average P/E of 3.56. Over the past year, EGY's Forward P/E has been as high as 4.04 and as low as 1.62, with a median of 2.38.
Another notable valuation metric for EGY is its P/B ratio of 2.12. 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 stock's P/B looks solid versus its industry's average P/B of 4.75. Over the past year, EGY's P/B has been as high as 3.33 and as low as 1.32, with a median of 2.05.
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. EGY has a P/S ratio of 1.53. This compares to its industry's average P/S of 1.56.
Finally, our model also underscores that EGY has a P/CF ratio of 3.15. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 5.73. Over the past 52 weeks, EGY's P/CF has been as high as 5.14 and as low as 1.84, with a median of 3.59.
Vermilion Energy (VET - Free Report) may be another strong Oil and Gas - Exploration and Production - International stock to add to your shortlist. VET is a # 1 (Strong Buy) stock with a Value grade of A.
Vermilion Energy sports a P/B ratio of 2.24 as well; this compares to its industry's price-to-book ratio of 4.75. In the past 52 weeks, VET's P/B has been as high as 2.32, as low as 0.61, with a median of 1.53.
These are only a few of the key metrics included in Vaalco Energy and Vermilion 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, EGY and VET look like an impressive value stock at the moment.