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Are Investors Undervaluing Equinor (EQNR) Right Now?

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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, 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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

Equinor (EQNR) is a stock many investors are watching right now. EQNR is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock is trading with a P/E ratio of 8.32, which compares to its industry's average of 9.35. Over the past 52 weeks, EQNR's Forward P/E has been as high as 14.75 and as low as 7.57, with a median of 10.73.

Investors will also notice that EQNR has a PEG ratio of 0.16. 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. EQNR's industry currently sports an average PEG of 0.31. Over the past 52 weeks, EQNR's PEG has been as high as 2.76 and as low as 0.15, with a median of 0.22.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. EQNR has a P/S ratio of 1.61. This compares to its industry's average P/S of 3.46.

Value investors will likely look at more than just these metrics, but the above data helps show that Equinor is likely undervalued currently. And when considering the strength of its earnings outlook, EQNR sticks out at as one of the market's strongest value stocks.


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