Back to top

Is Carrizo Oil (CRZO) a Great Value Stock Right Now?

Read MoreHide Full Article

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find 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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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.

One stock to keep an eye on is Carrizo Oil (CRZO - Free Report) . CRZO is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 4.32, which compares to its industry's average of 11.24. Over the past year, CRZO's Forward P/E has been as high as 17.41 and as low as 4.05, with a median of 7.27.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. CRZO has a P/S ratio of 1.5. This compares to its industry's average P/S of 2.14.

Finally, we should also recognize that CRZO has a P/CF ratio of 4.52. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 6.40. CRZO's P/CF has been as high as 7.40 and as low as 3.27, with a median of 5.36, all within the past year.

Value investors will likely look at more than just these metrics, but the above data helps show that Carrizo Oil is likely undervalued currently. And when considering the strength of its earnings outlook, CRZO sticks out at as one of the market's strongest value stocks.




In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


Carrizo Oil & Gas, Inc. (CRZO) - free report >>

More from Zacks Tale of the Tape

You May Like

Published in