Is Antero Resources (AR) a Great Value Stock Right Now?
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.
One company value investors might notice is Antero Resources (AR). AR 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 9.41, which compares to its industry's average of 11.24. AR's Forward P/E has been as high as 77.08 and as low as 8.37, with a median of 13.96, all within the past year.
AR is also sporting a PEG ratio of 0.47. 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. AR's PEG compares to its industry's average PEG of 0.76. Over the past 52 weeks, AR's PEG has been as high as 3.85 and as low as 0.42, with a median of 0.70.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. AR has a P/S ratio of 1.3. This compares to its industry's average P/S of 2.14.
Finally, investors should note that AR has a P/CF ratio of 4.77. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. AR's P/CF compares to its industry's average P/CF of 6.40. Over the past 52 weeks, AR's P/CF has been as high as 13.38 and as low as 3.73, with a median of 5.12.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Antero Resources is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, AR feels like a great value stock at the moment.
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