Should Value Investors Buy Earthstone Energy (ESTE) Stock?
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.
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 use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
Earthstone Energy (ESTE) is a stock many investors are watching right now. ESTE is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 2.69, while its industry has an average P/E of 6.51. Over the last 12 months, ESTE's Forward P/E has been as high as 9.21 and as low as 1.51, with a median of 3.70.
Finally, our model also underscores that ESTE has a P/CF ratio of 3.12. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 8.77. Over the past 52 weeks, ESTE's P/CF has been as high as 11.06 and as low as 2.29, with a median of 5.11.
If you're looking for another solid Oil and Gas - Exploration and Production - United States value stock, take a look at W&T Offshore (WTI). WTI is a # 1 (Strong Buy) stock with a Value score of A.
Furthermore, W&T Offshore holds a P/B ratio of -19.65 and its industry's price-to-book ratio is 3.36. WTI's P/B has been as high as -1.48, as low as -23.39, with a median of -3.16 over the past 12 months.
These are only a few of the key metrics included in Earthstone Energy and W&T Offshore strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, ESTE and WTI look like an impressive value stock at the moment.
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Earthstone Energy, Inc. (ESTE) : Free Stock Analysis Report
W&T Offshore, Inc. (WTI) : Free Stock Analysis Report
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