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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.

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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One company value investors might notice 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 15.56. Over the last 12 months, 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 ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 3.09. Over the past year, GPRK's P/B has been as high as 2.96 and as low as 1.42, with a median of 1.97.

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. GPRK has a P/S ratio of 0.79. This compares to its industry's average P/S of 2.19.

These are just a handful of the figures considered in Geopark'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 GPRK is an impressive value stock right now.

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