Is APA (APA) Stock Undervalued 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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 APA (APA). APA is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 3.81, while its industry has an average P/E of 5.74. Over the past 52 weeks, APA's Forward P/E has been as high as 43.67 and as low as 2.75, with a median of 4.87.
We also note that APA holds a PEG ratio of 0.13. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. APA's PEG compares to its industry's average PEG of 0.15. Within the past year, APA's PEG has been as high as 2.24 and as low as 0.09, with a median of 0.16.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. APA has a P/S ratio of 1.41. This compares to its industry's average P/S of 1.86.
Finally, investors will want to recognize that APA has a P/CF ratio of 3.23. 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. APA's P/CF compares to its industry's average P/CF of 8.06. APA's P/CF has been as high as 6.44 and as low as 2.43, with a median of 4.35, all within the past year.
Southwestern Energy (SWN) may be another strong Oil and Gas - Exploration and Production - United States stock to add to your shortlist. SWN is a # 2 (Buy) stock with a Value grade of A.
Additionally, Southwestern Energy has a P/B ratio of 7.19 while its industry's price-to-book ratio sits at 3.38. For SWN, this valuation metric has been as high as 8.65, as low as -90.42, with a median of 1.75 over the past year.
These are only a few of the key metrics included in APA and Southwestern Energy strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, APA and SWN look like an impressive value stock at the moment.
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APA Corporation (APA) : Free Stock Analysis Report
Southwestern Energy Company (SWN) : Free Stock Analysis Report
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