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Should Value Investors Buy Oasis Midstream Partners LP (OMP) Stock?

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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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.

Oasis Midstream Partners LP (OMP - Free Report) is a stock many investors are watching right now. OMP is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 8.95. This compares to its industry's average Forward P/E of 14.52. Over the past 52 weeks, OMP's Forward P/E has been as high as 16.07 and as low as 8.12, with a median of 9.09.

OMP is also sporting a PEG ratio of 0.81. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. OMP's industry currently sports an average PEG of 2.16. OMP's PEG has been as high as 1.46 and as low as 0.74, with a median of 0.82, all within the past year.

Another notable valuation metric for OMP is its P/B ratio of 1.04. 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. OMP's current P/B looks attractive when compared to its industry's average P/B of 1.53. OMP's P/B has been as high as 1.11 and as low as 0.81, with a median of 0.91, over the past year.

Finally, investors should note that OMP has a P/CF ratio of 8.95. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 9.77. Over the past year, OMP's P/CF has been as high as 9.58 and as low as 3.59, with a median of 7.26.

These are only a few of the key metrics included in Oasis Midstream Partners LP's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, OMP looks like an impressive value stock at the moment.




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