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Is Oasis Midstream Partners LP (OMP) Stock Undervalued 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.

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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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.

One company value investors might notice is Oasis Midstream Partners LP (OMP - Free Report) . OMP is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock is trading with a P/E ratio of 6.55, which compares to its industry's average of 12.25. Over the last 12 months, OMP's Forward P/E has been as high as 10.25 and as low as 5.11, with a median of 7.18.

Another notable valuation metric for OMP is its P/B ratio of 1.27. 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. This stock's P/B looks attractive against its industry's average P/B of 1.84. Over the past 12 months, OMP's P/B has been as high as 1.31 and as low as 0.64, with a median of 0.95.

Finally, our model also underscores that OMP has a P/CF ratio of 4.56. 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. OMP's current P/CF looks attractive when compared to its industry's average P/CF of 8.71. OMP's P/CF has been as high as 9.58 and as low as 2.97, with a median of 4.31, all within the past year.

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


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