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.
Should Value Investors Buy Chord Energy Corporation (CHRD) Stock?
Read MoreHide Full Article
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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of 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.
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 to watch right now is Chord Energy Corporation (CHRD - Free Report) . CHRD is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 3.45. This compares to its industry's average Forward P/E of 5.48. Over the past year, CHRD's Forward P/E has been as high as 8.75 and as low as 2.68, with a median of 5.13.
Investors should also recognize that CHRD has a P/B ratio of 2.25. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. CHRD's current P/B looks attractive when compared to its industry's average P/B of 3.34. Over the past 12 months, CHRD's P/B has been as high as 2.50 and as low as 1.64, with a median of 2.15.
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. CHRD has a P/S ratio of 1.18. This compares to its industry's average P/S of 1.94.
Finally, investors should note that CHRD has a P/CF ratio of 2.74. 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. This stock's P/CF looks attractive against its industry's average P/CF of 7.92. Over the past year, CHRD's P/CF has been as high as 6.62 and as low as 1.94, with a median of 2.67.
Investors could also keep in mind Stone Energy (TALO - Free Report) , an Oil and Gas - Exploration and Production - United States stock with a Zacks Rank of # 1 (Strong Buy) and Value grade of A.
Stone Energy also has a P/B ratio of 1.87 compared to its industry's price-to-book ratio of 3.34. Over the past year, its P/B ratio has been as high as 2.99, as low as 1.05, with a median of 1.63.
These are just a handful of the figures considered in Chord Energy Corporation and Stone Energy's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that CHRD and TALO is an impressive value stock right now.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Should Value Investors Buy Chord Energy Corporation (CHRD) Stock?
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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of 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.
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 to watch right now is Chord Energy Corporation (CHRD - Free Report) . CHRD is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 3.45. This compares to its industry's average Forward P/E of 5.48. Over the past year, CHRD's Forward P/E has been as high as 8.75 and as low as 2.68, with a median of 5.13.
Investors should also recognize that CHRD has a P/B ratio of 2.25. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. CHRD's current P/B looks attractive when compared to its industry's average P/B of 3.34. Over the past 12 months, CHRD's P/B has been as high as 2.50 and as low as 1.64, with a median of 2.15.
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. CHRD has a P/S ratio of 1.18. This compares to its industry's average P/S of 1.94.
Finally, investors should note that CHRD has a P/CF ratio of 2.74. 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. This stock's P/CF looks attractive against its industry's average P/CF of 7.92. Over the past year, CHRD's P/CF has been as high as 6.62 and as low as 1.94, with a median of 2.67.
Investors could also keep in mind Stone Energy (TALO - Free Report) , an Oil and Gas - Exploration and Production - United States stock with a Zacks Rank of # 1 (Strong Buy) and Value grade of A.
Stone Energy also has a P/B ratio of 1.87 compared to its industry's price-to-book ratio of 3.34. Over the past year, its P/B ratio has been as high as 2.99, as low as 1.05, with a median of 1.63.
These are just a handful of the figures considered in Chord Energy Corporation and Stone Energy's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that CHRD and TALO is an impressive value stock right now.