Is Geopark (GPRK) Stock Undervalued 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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 company value investors might notice is Geopark (GPRK). GPRK is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock is trading with a P/E ratio of 3.21, which compares to its industry's average of 8.83. Over the past 52 weeks, GPRK's Forward P/E has been as high as 4.96 and as low as 2.82, with a median of 3.42.
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. GPRK has a P/S ratio of 0.72. This compares to its industry's average P/S of 1.77.
Finally, investors should note that GPRK has a P/CF ratio of 2.11. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 4.86. Over the past 52 weeks, GPRK's P/CF has been as high as 3.11 and as low as 1.71, with a median of 2.02.
Investors could also keep in mind SM Energy (SM), an Oil and Gas - Exploration and Production - United States stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Furthermore, SM Energy holds a P/B ratio of 1.57 and its industry's price-to-book ratio is 2.63. SM's P/B has been as high as 2.07, as low as 0.94, with a median of 1.29 over the past 12 months.
These are only a few of the key metrics included in Geopark and SM 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, GPRK and SM look like an impressive value stock at the moment.
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Geopark Ltd (GPRK) : Free Stock Analysis Report
SM Energy Company (SM) : Free Stock Analysis Report
