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Are Investors Undervaluing Civitas Resources (CIVI) Right Now?

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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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.

Civitas Resources (CIVI - Free Report) is a stock many investors are watching right now. CIVI is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 5.34 right now. For comparison, its industry sports an average P/E of 8.73. Over the past year, CIVI's Forward P/E has been as high as 8.25 and as low as 3.66, with a median of 5.39.

Another notable valuation metric for CIVI is its P/B ratio of 1.13. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 2.46. Over the past 12 months, CIVI's P/B has been as high as 1.21 and as low as 0.86, with a median of 1.07.

Finally, investors should note that CIVI has a P/CF ratio of 2.69. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 3.88. Within the past 12 months, CIVI's P/CF has been as high as 4.57 and as low as 2.26, with a median of 2.73.

Another great Oil and Gas - Exploration and Production - United States stock you could consider is Geopark (GPRK - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.

Geopark also has a P/B ratio of 4.41 compared to its industry's price-to-book ratio of 2.46. Over the past year, its P/B ratio has been as high as 41.49, as low as 4.12, with a median of 7.53.

These are just a handful of the figures considered in Civitas Resources and Geopark'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 CIVI and GPRK is an impressive value stock right now.


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