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Is Oasis Midstream Partners LP (OMP) Stock Undervalued Right Now?

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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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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 P/E ratio of 4.49 right now. For comparison, its industry sports an average P/E of 11.92. Over the last 12 months, OMP's Forward P/E has been as high as 10.25 and as low as 4.49, with a median of 6.67.

Another valuation metric that we should highlight is OMP's P/B ratio of 1.03. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 1.85. OMP's P/B has been as high as 1.35 and as low as 0.64, with a median of 1.02, over the past year.

Finally, our model also underscores that OMP has a P/CF ratio of 3.70. 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. This stock's P/CF looks attractive against its industry's average P/CF of 8.70. Within the past 12 months, OMP's P/CF has been as high as 9.58 and as low as 2.97, with a median of 4.34.

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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