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Is SilverBow Resources (SBOW) a Great Value Stock Right Now?

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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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One stock to keep an eye on is SilverBow Resources (SBOW - Free Report) . SBOW is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value.

We should also highlight that SBOW has a P/B ratio of 1.28. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. SBOW's current P/B looks attractive when compared to its industry's average P/B of 1.81. Over the past year, SBOW's P/B has been as high as 2.06 and as low as 1.28, with a median of 1.67.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. SBOW has a P/S ratio of 1.14. This compares to its industry's average P/S of 1.95.

Finally, our model also underscores that SBOW has a P/CF ratio of 2.71. 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 4.93. Over the past 52 weeks, SBOW's P/CF has been as high as 4.06 and as low as 2.63, with a median of 3.10.

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


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