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 use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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.
Goodrich Petroleum is a stock many investors are watching right now. GDP is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.
Another valuation metric that we should highlight is GDP's P/B ratio of 1.15. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 1.89. GDP's P/B has been as high as 2.37 and as low as 0.47, with a median of 1.40, over the past year.
Finally, investors should note that GDP has a P/CF ratio of 1.51. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 5.44. GDP's P/CF has been as high as 3.49 and as low as 0.56, with a median of 1.73, 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 Goodrich Petroleum is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, GDP feels like a great value stock at the moment.
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Are Investors Undervaluing Goodrich Petroleum (GDP) Right Now?
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 use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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.
Goodrich Petroleum is a stock many investors are watching right now. GDP is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.
Another valuation metric that we should highlight is GDP's P/B ratio of 1.15. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 1.89. GDP's P/B has been as high as 2.37 and as low as 0.47, with a median of 1.40, over the past year.
Finally, investors should note that GDP has a P/CF ratio of 1.51. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 5.44. GDP's P/CF has been as high as 3.49 and as low as 0.56, with a median of 1.73, 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 Goodrich Petroleum is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, GDP feels like a great value stock at the moment.