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Is Civitas Resources (CIVI) Stock Undervalued Right Now?
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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.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 Civitas Resources (CIVI - Free Report) . 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 5.67 right now. For comparison, its industry sports an average P/E of 10.85. Over the past 52 weeks, CIVI's Forward P/E has been as high as 7.40 and as low as 4.27, with a median of 5.76.
Another valuation metric that we should highlight is CIVI's P/B ratio of 1.16. 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. CIVI's current P/B looks attractive when compared to its industry's average P/B of 2.62. Within the past 52 weeks, CIVI's P/B has been as high as 1.36 and as low as 0.93, with a median of 1.11.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. CIVI has a P/S ratio of 1.7. This compares to its industry's average P/S of 2.03.
Finally, our model also underscores that CIVI has a P/CF ratio of 3.40. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 6.48. Within the past 12 months, CIVI's P/CF has been as high as 4.06 and as low as 2.43, with a median of 3.38.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Civitas Resources is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CIVI feels like a great value stock at the moment.
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Is Civitas Resources (CIVI) Stock Undervalued Right Now?
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.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 Civitas Resources (CIVI - Free Report) . 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 5.67 right now. For comparison, its industry sports an average P/E of 10.85. Over the past 52 weeks, CIVI's Forward P/E has been as high as 7.40 and as low as 4.27, with a median of 5.76.
Another valuation metric that we should highlight is CIVI's P/B ratio of 1.16. 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. CIVI's current P/B looks attractive when compared to its industry's average P/B of 2.62. Within the past 52 weeks, CIVI's P/B has been as high as 1.36 and as low as 0.93, with a median of 1.11.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. CIVI has a P/S ratio of 1.7. This compares to its industry's average P/S of 2.03.
Finally, our model also underscores that CIVI has a P/CF ratio of 3.40. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 6.48. Within the past 12 months, CIVI's P/CF has been as high as 4.06 and as low as 2.43, with a median of 3.38.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Civitas Resources is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CIVI feels like a great value stock at the moment.