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Should Value Investors Buy Oasis Midstream Partners LP (OMP) Stock?

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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.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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 Oasis Midstream Partners LP (OMP - Free Report) . OMP is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 6.63. This compares to its industry's average Forward P/E of 12.84. Over the past year, OMP's Forward P/E has been as high as 10.25 and as low as 5.11, with a median of 7.86.

Another notable valuation metric for OMP is its P/B ratio of 1.02. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. OMP's current P/B looks attractive when compared to its industry's average P/B of 2.41. Over the past year, OMP's P/B has been as high as 1.11 and as low as 0.64, with a median of 0.94.

Finally, investors will want to recognize that OMP has a P/CF ratio of 4.51. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. OMP's current P/CF looks attractive when compared to its industry's average P/CF of 9.47. OMP's P/CF has been as high as 11.79 and as low as 2.97, with a median of 4.39, all within the past year.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Oasis Midstream Partners LP is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, OMP feels like a great value stock at the moment.




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