Is Northern Oil and Gas (NOG) a Great Value Stock 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.
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 Northern Oil and Gas (NOG). NOG is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 3.27, while its industry has an average P/E of 5.64. Over the past year, NOG's Forward P/E has been as high as 6.09 and as low as 2.76, with a median of 3.78.
Finally, investors should note that NOG has a P/CF ratio of 6.16. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. NOG's P/CF compares to its industry's average P/CF of 8.12. Over the past 52 weeks, NOG's P/CF has been as high as 50.89 and as low as -10.13, with a median of 6.57.
Investors could also keep in mind Stone Energy (TALO), an Oil and Gas - Exploration and Production - United States stock with a Zacks Rank of # 1 (Strong Buy) and Value grade of A.
Stone Energy sports a P/B ratio of 1.80 as well; this compares to its industry's price-to-book ratio of 3.42. In the past 52 weeks, TALO's P/B has been as high as 2.99, as low as 1.05, with a median of 1.61.
These are only a few of the key metrics included in Northern Oil and Gas 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, NOG and TALO look like an impressive value stock at the moment.
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