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Is Vaalco Energy (EGY) Stock Undervalued Right Now?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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.

One stock to keep an eye on is Vaalco Energy (EGY - Free Report) . EGY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.

We should also highlight that EGY has a P/B ratio of 1.17. 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 1.51. EGY's P/B has been as high as 1.65 and as low as 0.90, with a median of 1.13, over the past year.

Finally, we should also recognize that EGY has a P/CF ratio of 2.93. 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. EGY's P/CF compares to its industry's average P/CF of 4.14. Over the past 52 weeks, EGY's P/CF has been as high as 4.31 and as low as 2.45, with a median of 3.25.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Vaalco Energy is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, EGY feels like a great value stock at the moment.


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