Are Investors Undervaluing Chord Energy Corporation (CHRD) 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.
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 to watch right now is Chord Energy Corporation (CHRD). CHRD is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 3.43 right now. For comparison, its industry sports an average P/E of 5.80. Over the past 52 weeks, CHRD's Forward P/E has been as high as 8.75 and as low as 2.68, with a median of 5.23.
Another valuation metric that we should highlight is CHRD's P/B ratio of 1.75. Investors use the P/B ratio to look at a stock's market value versus 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 year, CHRD's P/B has been as high as 2.50 and as low as 1.37, with a median of 2.04.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's 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. CHRD has a P/S ratio of 1.27. This compares to its industry's average P/S of 2.18.
Investors could also keep in mind SilverBow Resources (SBOW), an Oil and Gas - Exploration and Production - United States stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Furthermore, SilverBow Resources holds a P/B ratio of 3.63 and its industry's price-to-book ratio is 3.56. SBOW's P/B has been as high as 5.26, as low as 1.13, with a median of 2.56 over the past 12 months.
Value investors will likely look at more than just these metrics, but the above data helps show that Chord Energy Corporation and SilverBow Resources are likely undervalued currently. And when considering the strength of its earnings outlook, CHRD and SBOW sticks out as one of the market's strongest value stocks.
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Chord Energy Corporation (CHRD) : Free Stock Analysis Report
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