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Are Investors Undervaluing Matador Resources (MTDR) 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, 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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 Matador Resources (MTDR - Free Report) . MTDR 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 8.24, which compares to its industry's average of 9.70. MTDR's Forward P/E has been as high as 9.96 and as low as 5.60, with a median of 7.28, all within the past year.
Another notable valuation metric for MTDR is its P/B ratio of 1.73. 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. This stock's P/B looks solid versus its industry's average P/B of 2.33. Over the past year, MTDR's P/B has been as high as 2.13 and as low as 1.47, with a median of 1.77.
Finally, our model also underscores that MTDR has a P/CF ratio of 4.57. 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. MTDR's P/CF compares to its industry's average P/CF of 5.76. Over the past year, MTDR's P/CF has been as high as 5.42 and as low as 3.06, with a median of 4.63.
These are just a handful of the figures considered in Matador Resources'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 MTDR is an impressive value stock right now.
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Are Investors Undervaluing Matador Resources (MTDR) 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.
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 Matador Resources (MTDR - Free Report) . MTDR 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 8.24, which compares to its industry's average of 9.70. MTDR's Forward P/E has been as high as 9.96 and as low as 5.60, with a median of 7.28, all within the past year.
Another notable valuation metric for MTDR is its P/B ratio of 1.73. 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. This stock's P/B looks solid versus its industry's average P/B of 2.33. Over the past year, MTDR's P/B has been as high as 2.13 and as low as 1.47, with a median of 1.77.
Finally, our model also underscores that MTDR has a P/CF ratio of 4.57. 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. MTDR's P/CF compares to its industry's average P/CF of 5.76. Over the past year, MTDR's P/CF has been as high as 5.42 and as low as 3.06, with a median of 4.63.
These are just a handful of the figures considered in Matador Resources'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 MTDR is an impressive value stock right now.