Is Continental Resources (CLR) a Great Value Stock Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
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.
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 Continental Resources (CLR). CLR is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.
We also note that CLR holds a PEG ratio of 0.15. 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. CLR's PEG compares to its industry's average PEG of 0.17. Over the past 52 weeks, CLR's PEG has been as high as 3.67 and as low as 0.13, with a median of 0.26.
Another notable valuation metric for CLR is its P/B ratio of 2.95. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 3.56. Over the past 12 months, CLR's P/B has been as high as 3.26 and as low as 1.73, with a median of 2.51.
Finally, our model also underscores that CLR has a P/CF ratio of 6.34. 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. CLR's current P/CF looks attractive when compared to its industry's average P/CF of 11.75. Over the past 52 weeks, CLR's P/CF has been as high as 7.11 and as low as 4.58, with a median of 5.89.
If you're looking for another solid Oil and Gas - Exploration and Production - United States value stock, take a look at CNX Resources (CNX). CNX is a # 2 (Buy) stock with a Value score of A.
CNX Resources is currently trading with a Forward P/E ratio of 5.14 while its PEG ratio sits at 0.16. Both of the company's metrics compare favorably to its industry's average P/E of 5.79 and average PEG ratio of 0.17.
Over the past year, CNX's P/E has been as high as 10.93, as low as 5.05, with a median of 8.45; its PEG ratio has been as high as 0.53, as low as 0.16, with a median of 0.26 during the same time period.
Additionally, CNX Resources has a P/B ratio of 1.33 while its industry's price-to-book ratio sits at 3.56. For CNX, this valuation metric has been as high as 1.82, as low as 0.56, with a median of 0.95 over the past year.
These are only a few of the key metrics included in Continental Resources and CNX 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, CLR and CNX look like an impressive value stock at the moment.
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Continental Resources, Inc. (CLR) : Free Stock Analysis Report
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