Should Value Investors Buy Civitas Resources (CIVI) Stock?
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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company to watch right now is Civitas Resources (CIVI). CIVI is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 5.43 right now. For comparison, its industry sports an average P/E of 8.60. Over the past year, CIVI's Forward P/E has been as high as 8.25 and as low as 4.09, with a median of 6.19.
We should also highlight that CIVI has a P/B ratio of 1.43. 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 2.58. Within the past 52 weeks, CIVI's P/B has been as high as 1.46 and as low as 0.86, with a median of 1.10.
Finally, investors should note that CIVI has a P/CF ratio of 3.31. 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. CIVI's current P/CF looks attractive when compared to its industry's average P/CF of 4.77. Over the past 52 weeks, CIVI's P/CF has been as high as 3.65 and as low as 2.26, with a median of 2.80.
If you're looking for another solid Oil and Gas - Exploration and Production - United States value stock, take a look at Callon Petroleum (CPE). CPE is a # 2 (Buy) stock with a Value score of A.
Callon Petroleum also has a P/B ratio of 0.75 compared to its industry's price-to-book ratio of 2.58. Over the past year, its P/B ratio has been as high as 1.06, as low as 0.52, with a median of 0.72.
Value investors will likely look at more than just these metrics, but the above data helps show that Civitas Resources and Callon Petroleum are likely undervalued currently. And when considering the strength of its earnings outlook, CIVI and CPE sticks out as one of the market's strongest value stocks.
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Civitas Resources, Inc. (CIVI) : Free Stock Analysis Report
Callon Petroleum Company (CPE) : Free Stock Analysis Report
