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Are Investors Undervaluing SilverBow Resources (SBOW) 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, value investing is easily one of the most popular ways to find great stocks in any market environment. 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.

SilverBow Resources (SBOW - Free Report) is a stock many investors are watching right now. SBOW is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value.

Another notable valuation metric for SBOW is its P/B ratio of 1.19. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 1.47. Over the past 12 months, SBOW's P/B has been as high as 2.06 and as low as 1.16, 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 popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. SBOW has a P/S ratio of 1.13. This compares to its industry's average P/S of 1.46.

Finally, investors will want to recognize that SBOW has a P/CF ratio of 2.51. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. SBOW's current P/CF looks attractive when compared to its industry's average P/CF of 4. Over the past 52 weeks, SBOW's P/CF has been as high as 4.06 and as low as 2.46, with a median of 3.06.

These are just a handful of the figures considered in SilverBow Resources'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 SBOW is an impressive value stock right now.


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