We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Is Southwestern Energy (SWN) Stock Undervalued Right Now?
Read MoreHide Full Article
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.
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 to watch right now is Southwestern Energy (SWN - Free Report) . SWN is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 13.03, which compares to its industry's average of 19.06. Over the last 12 months, SWN's Forward P/E has been as high as 13.03 and as low as 2.80, with a median of 5.04.
Investors will also notice that SWN has a PEG ratio of 0.66. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. SWN's PEG compares to its industry's average PEG of 1.62. Over the last 12 months, SWN's PEG has been as high as 0.76 and as low as 0.31, with a median of 0.48.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Southwestern Energy is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, SWN feels like a great value stock at the moment.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Is Southwestern Energy (SWN) Stock Undervalued Right Now?
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.
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 to watch right now is Southwestern Energy (SWN - Free Report) . SWN is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 13.03, which compares to its industry's average of 19.06. Over the last 12 months, SWN's Forward P/E has been as high as 13.03 and as low as 2.80, with a median of 5.04.
Investors will also notice that SWN has a PEG ratio of 0.66. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. SWN's PEG compares to its industry's average PEG of 1.62. Over the last 12 months, SWN's PEG has been as high as 0.76 and as low as 0.31, with a median of 0.48.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Southwestern Energy is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, SWN feels like a great value stock at the moment.