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Are Investors Undervaluing Northern Oil and Gas (NOG) 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.

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

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 to watch right now is Northern Oil and Gas (NOG - Free Report) . NOG is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 3.31, which compares to its industry's average of 6.27. Over the past year, NOG's Forward P/E has been as high as 5.57 and as low as 2.65, with a median of 3.57.

Finally, we should also recognize that NOG has a P/CF ratio of 6.87. 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 8.42. NOG's P/CF has been as high as 50.89 and as low as -9.61, with a median of 7.12, all within the past year.

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

Furthermore, W&T Offshore holds a P/B ratio of -9.09 and its industry's price-to-book ratio is 3.53. WTI's P/B has been as high as -1.48, as low as -9.17, with a median of -2.92 over the past 12 months.

Value investors will likely look at more than just these metrics, but the above data helps show that Northern Oil and Gas and W&T Offshore are likely undervalued currently. And when considering the strength of its earnings outlook, NOG and WTI sticks out as one of the market's strongest value stocks.


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W&T Offshore, Inc. (WTI) - free report >>

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