We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
APA vs. LNG: Which Stock Is the Better Value Option?
Read MoreHide Full Article
Investors interested in stocks from the Oil and Gas - Exploration and Production - United States sector have probably already heard of APA (APA - Free Report) and Cheniere Energy (LNG - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, APA has a Zacks Rank of #1 (Strong Buy), while Cheniere Energy has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that APA has an improving earnings outlook. However, value investors will care about much more than just this.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
APA currently has a forward P/E ratio of 7.79, while LNG has a forward P/E of 42.74. We also note that APA has a PEG ratio of 0.78. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. LNG currently has a PEG ratio of 2.85.
Another notable valuation metric for APA is its P/B ratio of 2.04. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, LNG has a P/B of 5.07.
These are just a few of the metrics contributing to APA's Value grade of A and LNG's Value grade of C.
APA stands above LNG thanks to its solid earnings outlook, and based on these valuation figures, we also feel that APA is the superior value option right now.
View the Zacks #1 Rank List
Image: Bigstock
APA vs. LNG: Which Stock Is the Better Value Option?
Investors interested in stocks from the Oil and Gas - Exploration and Production - United States sector have probably already heard of APA (APA - Free Report) and Cheniere Energy (LNG - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, APA has a Zacks Rank of #1 (Strong Buy), while Cheniere Energy has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that APA has an improving earnings outlook. However, value investors will care about much more than just this.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
APA currently has a forward P/E ratio of 7.79, while LNG has a forward P/E of 42.74. We also note that APA has a PEG ratio of 0.78. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. LNG currently has a PEG ratio of 2.85.
Another notable valuation metric for APA is its P/B ratio of 2.04. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, LNG has a P/B of 5.07.
These are just a few of the metrics contributing to APA's Value grade of A and LNG's Value grade of C.
APA stands above LNG thanks to its solid earnings outlook, and based on these valuation figures, we also feel that APA is the superior value option right now.