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Is W&T Offshore (WTI) 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.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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 value investors might notice is W&T Offshore (WTI - Free Report) . WTI is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 4.68, while its industry has an average P/E of 6.16. WTI's Forward P/E has been as high as 14.76 and as low as 2.30, with a median of 4.21, all within the past year.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. WTI has a P/S ratio of 1.1. This compares to its industry's average P/S of 1.62.

Finally, investors should note that WTI has a P/CF ratio of 2.60. 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. WTI's current P/CF looks attractive when compared to its industry's average P/CF of 7.91. Over the past 52 weeks, WTI's P/CF has been as high as 31.64 and as low as 2.06, with a median of 7.65.

These are only a few of the key metrics included in W&T Offshore's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, WTI looks like an impressive value stock at the moment.


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