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Should Value Investors Buy Geopark (GPRK) Stock?

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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One company to watch right now is Geopark (GPRK - Free Report) . GPRK is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 8.32 right now. For comparison, its industry sports an average P/E of 11.64. Over the past 52 weeks, GPRK's Forward P/E has been as high as 12.16 and as low as 2.03, with a median of 3.14.

Another valuation metric that we should highlight is GPRK's P/B ratio of 1.5. 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. GPRK's current P/B looks attractive when compared to its industry's average P/B of 3.02. Within the past 52 weeks, GPRK's P/B has been as high as 2.96 and as low as 1.42, with a median of 1.97.

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


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