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Are Investors Undervaluing Continental Resources (CLR) Right Now?

Zacks Equity Research
Does GCI Liberty (GLIBA) have what it takes to be a top stock pick for momentum investors? Let's find out.

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.

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 to watch right now is Continental Resources (CLR). CLR is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 13.89. This compares to its industry's average Forward P/E of 14. Over the past year, CLR's Forward P/E has been as high as 24.96 and as low as 10.62, with a median of 18.06.

Investors will also notice that CLR has a PEG ratio of 0.83. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. CLR's industry has an average PEG of 0.85 right now. Over the past 52 weeks, CLR's PEG has been as high as 1.59 and as low as 0.50, with a median of 1.22.

Finally, investors should note that CLR has a P/CF ratio of 5.59. 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 P/CF compares to its industry's average P/CF of 5.73. CLR's P/CF has been as high as 9.30 and as low as 3.90, with a median of 6.21, all within the past year.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Continental Resources is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CLR feels like a great value stock at the moment.


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