Is Callon Petroleum (CPE) 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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on is Callon Petroleum (CPE). CPE is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 4.33, while its industry has an average P/E of 8.40. CPE's Forward P/E has been as high as 5.02 and as low as 2.24, with a median of 3.37, all within the past year.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. CPE has a P/S ratio of 1.03. This compares to its industry's average P/S of 1.79.
Finally, our model also underscores that CPE has a P/CF ratio of 1.50. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 4.68. Within the past 12 months, CPE's P/CF has been as high as 1.88 and as low as 0.97, with a median of 1.42.
California Resources (CRC) may be another strong Oil and Gas - Exploration and Production - United States stock to add to your shortlist. CRC is a # 2 (Buy) stock with a Value grade of A.
Additionally, California Resources has a P/B ratio of 1.72 while its industry's price-to-book ratio sits at 2.55. For CRC, this valuation metric has been as high as 1.93, as low as 1.27, with a median of 1.67 over the past year.
These are only a few of the key metrics included in Callon Petroleum and California Resources strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, CPE and CRC look like an impressive value stock at the moment.
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Callon Petroleum Company (CPE) : Free Stock Analysis Report
California Resources Corporation (CRC) : Free Stock Analysis Report
