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Is Gulfport Energy (GPOR) Stock Undervalued Right Now?

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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

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.

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.

One stock to keep an eye on is Gulfport Energy (GPOR - Free Report) . GPOR is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 6.04, while its industry has an average P/E of 11.71. Over the past year, GPOR's Forward P/E has been as high as 9.90 and as low as 5.73, with a median of 7.93.

Investors should also note that GPOR holds a PEG ratio of 0.45. 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. GPOR's industry has an average PEG of 0.78 right now. GPOR's PEG has been as high as 0.52 and as low as 0.20, with a median of 0.39, all within the past year.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. GPOR has a P/S ratio of 1.16. This compares to its industry's average P/S of 1.95.

Finally, we should also recognize that GPOR has a P/CF ratio of 1.66. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. GPOR's P/CF compares to its industry's average P/CF of 4.93. GPOR's P/CF has been as high as 6.66 and as low as 1.55, with a median of 2.34, all within the past year.

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


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