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Are Investors Undervaluing Vista Oil & Gas (VIST) 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.

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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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 Vista Oil & Gas (VIST - Free Report) . VIST is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 3.76, which compares to its industry's average of 7.57. Over the past 52 weeks, VIST's Forward P/E has been as high as 5.57 and as low as 2.83, with a median of 3.76.

Finally, we should also recognize that VIST has a P/CF ratio of 3.29. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 4.22. Within the past 12 months, VIST's P/CF has been as high as 3.85 and as low as 1.63, with a median of 3.06.

These are just a handful of the figures considered in Vista Oil & Gas'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 VIST is an impressive value stock right now.


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