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Are Investors Undervaluing Matador Resources (MTDR) Right Now?

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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

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.

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.

Matador Resources (MTDR - Free Report) is a stock many investors are watching right now. MTDR is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 7.12. This compares to its industry's average Forward P/E of 10.76. MTDR's Forward P/E has been as high as 8.71 and as low as 4.41, with a median of 7.10, all within the past year.

Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. MTDR has a P/S ratio of 2.07. This compares to its industry's average P/S of 2.12.

Another great Oil and Gas - Exploration and Production - United States stock you could consider is SM Energy (SM - Free Report) , which is a Zacks Rank of #2 (Buy) stock with a Value Score of A.

Furthermore, SM Energy holds a P/B ratio of 0.64 and its industry's price-to-book ratio is 3.19. SM's P/B has been as high as 1.30, as low as 0.53, with a median of 0.79 over the past 12 months.

These are only a few of the key metrics included in Matador Resources and SM Energy strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, MTDR and SM look like an impressive value stock at the moment.

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