Back to top

Are Investors Undervaluing Chaparral Energy, Inc. (CHAP) Right Now?

Read MoreHide Full Article

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.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

Chaparral Energy, Inc. (CHAP - Free Report) is a stock many investors are watching right now. CHAP is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 10.37, while its industry has an average P/E of 11.26. Over the past 52 weeks, CHAP's Forward P/E has been as high as 2,938.31 and as low as 8.24, with a median of 52.25.

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. CHAP has a P/S ratio of 1.79. This compares to its industry's average P/S of 1.91.

These are just a handful of the figures considered in Chaparral Energy, Inc.'s great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that CHAP is an impressive value stock right now.




In-Depth Zacks Research for the Tickers Above


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


Chaparral Energy, Inc. (CHAP) - free report >>

More from Zacks Tale of the Tape

You May Like

Published in