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Are Investors Undervaluing Matador Resources (MTDR) Right Now?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find 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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

Matador Resources (MTDR - Free Report) is a stock many investors are watching right now. MTDR is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 13.64. This compares to its industry's average Forward P/E of 19.67. Over the past year, MTDR's Forward P/E has been as high as 16.85 and as low as 8.68, with a median of 11.69.

Investors should also recognize that MTDR has a P/B ratio of 1.14. 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. MTDR's current P/B looks attractive when compared to its industry's average P/B of 1.89. Over the past year, MTDR's P/B has been as high as 1.42 and as low as 0.76, with a median of 1.12.

Finally, investors should note that MTDR has a P/CF ratio of 4.17. 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. MTDR's P/CF compares to its industry's average P/CF of 5.44. Over the past 52 weeks, MTDR's P/CF has been as high as 5.20 and as low as 2.77, with a median of 4.03.

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


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