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Are Investors Undervaluing Murphy Oil (MUR) 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.
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.
Murphy Oil (MUR - Free Report) is a stock many investors are watching right now. MUR 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 9.84 right now. For comparison, its industry sports an average P/E of 11.46. MUR's Forward P/E has been as high as 10.33 and as low as 5.66, with a median of 7.45, all within the past year.
Another notable valuation metric for MUR is its P/B ratio of 1.35. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 2.70. MUR's P/B has been as high as 1.36 and as low as 0.98, with a median of 1.19, over the past year.
Finally, our model also underscores that MUR has a P/CF ratio of 4.96. 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. MUR's P/CF compares to its industry's average P/CF of 6.73. Over the past 52 weeks, MUR's P/CF has been as high as 4.96 and as low as 2.50, with a median of 3.88.
These are only a few of the key metrics included in Murphy Oil'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, MUR looks like an impressive value stock at the moment.
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Are Investors Undervaluing Murphy Oil (MUR) Right Now?
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.
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.
Murphy Oil (MUR - Free Report) is a stock many investors are watching right now. MUR 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 9.84 right now. For comparison, its industry sports an average P/E of 11.46. MUR's Forward P/E has been as high as 10.33 and as low as 5.66, with a median of 7.45, all within the past year.
Another notable valuation metric for MUR is its P/B ratio of 1.35. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 2.70. MUR's P/B has been as high as 1.36 and as low as 0.98, with a median of 1.19, over the past year.
Finally, our model also underscores that MUR has a P/CF ratio of 4.96. 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. MUR's P/CF compares to its industry's average P/CF of 6.73. Over the past 52 weeks, MUR's P/CF has been as high as 4.96 and as low as 2.50, with a median of 3.88.
These are only a few of the key metrics included in Murphy Oil'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, MUR looks like an impressive value stock at the moment.