Are Investors Undervaluing Diamondback Energy (FANG) 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, 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.
Diamondback Energy (FANG) is a stock many investors are watching right now. FANG is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 7.35, which compares to its industry's average of 8.20. FANG's Forward P/E has been as high as 8.23 and as low as 5.21, with a median of 6.35, all within the past year.
Investors should also recognize that FANG has a P/B ratio of 1.67. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 2.43. FANG's P/B has been as high as 1.99 and as low as 1.40, with a median of 1.63, over the past year.
Stone Energy (TALO) may be another strong Oil and Gas - Exploration and Production - United States stock to add to your shortlist. TALO is a # 2 (Buy) stock with a Value grade of A.
Furthermore, Stone Energy holds a P/B ratio of 0.91 and its industry's price-to-book ratio is 2.43. TALO's P/B has been as high as 1.56, as low as 0.68, with a median of 1.03 over the past 12 months.
These are only a few of the key metrics included in Diamondback Energy and Stone 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, FANG and TALO look like an impressive value stock at the moment.
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Diamondback Energy, Inc. (FANG) : Free Stock Analysis Report
Talos Energy Inc. (TALO) : Free Stock Analysis Report
