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Are Investors Undervaluing California Resources (CRC) 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.

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 stock to keep an eye on is California Resources (CRC - Free Report) . CRC is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 7.69. This compares to its industry's average Forward P/E of 8.33. Over the last 12 months, CRC's Forward P/E has been as high as 10.91 and as low as 5.17, with a median of 6.93.

We should also highlight that CRC has a P/B ratio of 1.71. 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. CRC's current P/B looks attractive when compared to its industry's average P/B of 2.54. CRC's P/B has been as high as 1.93 and as low as 1.27, with a median of 1.67, over the past year.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. CRC has a P/S ratio of 1.24. This compares to its industry's average P/S of 1.88.

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

Additionally, Murphy Oil has a P/B ratio of 1.27 while its industry's price-to-book ratio sits at 2.54. For MUR, this valuation metric has been as high as 1.62, as low as 0.98, with a median of 1.25 over the past year.

These are only a few of the key metrics included in California Resources and Murphy Oil strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, CRC and MUR look like an impressive value stock at the moment.


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