Back to top

Image: Bigstock

Is HighPeak Energy (HPK) a Great Value Stock Right Now?

Read MoreHide Full Article

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, 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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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 HighPeak Energy (HPK - Free Report) . HPK is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 9.04, which compares to its industry's average of 9.71. Over the past 52 weeks, HPK's Forward P/E has been as high as 11.44 and as low as 3.98, with a median of 6.10.

We should also highlight that HPK has a P/B ratio of 1.19. 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 2.34. Over the past year, HPK's P/B has been as high as 1.63 and as low as 0.98, with a median of 1.30.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. HPK has a P/S ratio of 1.66. This compares to its industry's average P/S of 2.11.

Finally, investors should note that HPK has a P/CF ratio of 2.82. 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. HPK's current P/CF looks attractive when compared to its industry's average P/CF of 5.79. HPK's P/CF has been as high as 3.89 and as low as 2.17, with a median of 3.01, all within the past year.

These are just a handful of the figures considered in HighPeak Energy'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 HPK is an impressive value stock right now.

See More Zacks Research for These Tickers

Normally $25 each - click below to receive one report FREE:

HighPeak Energy, Inc. (HPK) - free report >>

Published in