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Are Investors Undervaluing Geopark (GPRK) 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, 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.

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.

One stock to keep an eye on is Geopark (GPRK). GPRK is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 3 right now. For comparison, its industry sports an average P/E of 6.10. GPRK's Forward P/E has been as high as 12.53 and as low as 2.07, with a median of 3.46, all within the past year.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. GPRK has a P/S ratio of 1.17. This compares to its industry's average P/S of 2.34.

Finally, investors should note that GPRK has a P/CF ratio of 4.69. 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 12.25. Within the past 12 months, GPRK's P/CF has been as high as 1,735.76 and as low as -21.27, with a median of 5.10.

SM Energy (SM) may be another strong Oil and Gas - Exploration and Production - United States stock to add to your shortlist. SM is a # 2 (Buy) stock with a Value grade of A.

Furthermore, SM Energy holds a P/B ratio of 2.16 and its industry's price-to-book ratio is 3.62. SM's P/B has been as high as 2.79, as low as 1.14, with a median of 2.04 over the past 12 months.

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


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Geopark Ltd (GPRK) : Free Stock Analysis Report
 
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