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Should Value Investors Buy Vista Oil & Gas (VIST) Stock?

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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.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader 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.

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.

Vista Oil & Gas (VIST - Free Report) is a stock many investors are watching right now. VIST is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock is trading with a P/E ratio of 3.62, which compares to its industry's average of 7.30. Over the past 52 weeks, VIST's Forward P/E has been as high as 20.44 and as low as 2.83, with a median of 3.88.

Finally, our model also underscores that VIST has a P/CF ratio of 3.27. 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. VIST's current P/CF looks attractive when compared to its industry's average P/CF of 5.71. Over the past 52 weeks, VIST's P/CF has been as high as 3.65 and as low as 1.63, with a median of 2.73.

These are only a few of the key metrics included in Vista Oil & Gas'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, VIST looks like an impressive value stock at the moment.

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