Are These Oils-Energy Stocks a Great Value Stocks Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 company value investors might notice is Falcon Minerals (FLMN). FLMN is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 14.17, while its industry has an average P/E of 22.41. Over the past year, FLMN's Forward P/E has been as high as 43.56 and as low as 11.96, with a median of 17.50.
Another notable valuation metric for FLMN is its P/B ratio of 1.93. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. FLMN's current P/B looks attractive when compared to its industry's average P/B of 2.87. Over the past year, FLMN's P/B has been as high as 2.56 and as low as 1.15, with a median of 1.84.
Another great Oil and Gas - Field Services stock you could consider is ProPetro Holding (PUMP), which is a # 2 (Buy) stock with a Value Score of A.
Furthermore, ProPetro Holding holds a P/B ratio of 1.25 and its industry's price-to-book ratio is 2.87. PUMP's P/B has been as high as 1.59, as low as 0.80, with a median of 1.13 over the past 12 months.
Value investors will likely look at more than just these metrics, but the above data helps show that Falcon Minerals and ProPetro Holding are likely undervalued currently. And when considering the strength of its earnings outlook, FLMN and PUMP sticks out as one of the market's strongest value stocks.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Falcon Minerals Corporation (FLMN) : Free Stock Analysis Report
ProPetro Holding Corp. (PUMP) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
