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Should Value Investors Buy Murphy Oil (MUR) Stock?
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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore 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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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.
Murphy Oil (MUR - Free Report) is a stock many investors are watching right now. MUR is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 7.45, which compares to its industry's average of 8.07. Over the past year, MUR's Forward P/E has been as high as 8.64 and as low as 5.25, with a median of 6.44.
We should also highlight that MUR has a P/B ratio of 1.24. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 2.37. Over the past year, MUR's P/B has been as high as 1.53 and as low as 0.98, with a median of 1.25.
Finally, investors will want to recognize that MUR has a P/CF ratio of 4.26. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. MUR's current P/CF looks attractive when compared to its industry's average P/CF of 5.05. Within the past 12 months, MUR's P/CF has been as high as 4.67 and as low as 2.50, with a median of 3.72.
Value investors will likely look at more than just these metrics, but the above data helps show that Murphy Oil is likely undervalued currently. And when considering the strength of its earnings outlook, MUR sticks out at as one of the market's strongest value stocks.
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Should Value Investors Buy Murphy Oil (MUR) Stock?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore 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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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.
Murphy Oil (MUR - Free Report) is a stock many investors are watching right now. MUR is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 7.45, which compares to its industry's average of 8.07. Over the past year, MUR's Forward P/E has been as high as 8.64 and as low as 5.25, with a median of 6.44.
We should also highlight that MUR has a P/B ratio of 1.24. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 2.37. Over the past year, MUR's P/B has been as high as 1.53 and as low as 0.98, with a median of 1.25.
Finally, investors will want to recognize that MUR has a P/CF ratio of 4.26. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. MUR's current P/CF looks attractive when compared to its industry's average P/CF of 5.05. Within the past 12 months, MUR's P/CF has been as high as 4.67 and as low as 2.50, with a median of 3.72.
Value investors will likely look at more than just these metrics, but the above data helps show that Murphy Oil is likely undervalued currently. And when considering the strength of its earnings outlook, MUR sticks out at as one of the market's strongest value stocks.