Should Value Investors Buy Vista Oil & Gas (VIST) Stock?
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.
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.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on is Vista Oil & Gas (VIST). VIST is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 4.59 right now. For comparison, its industry sports an average P/E of 8.61. Over the past year, VIST's Forward P/E has been as high as 5.24 and as low as 2.83, with a median of 3.76.
Finally, investors should note that VIST has a P/CF ratio of 4.21. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 4.65. Within the past 12 months, VIST's P/CF has been as high as 4.27 and as low as 1.63, with a median of 3.06.
Another great Oil and Gas - Integrated - International stock you could consider is YPF Sociedad Anonima (YPF), which is a # 1 (Strong Buy) stock with a Value Score of A.
YPF Sociedad Anonima sports a P/B ratio of 0.46 as well; this compares to its industry's price-to-book ratio of 1.53. In the past 52 weeks, YPF's P/B has been as high as 0.47, as low as 0.11, with a median of 0.28.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Vista Oil & Gas and YPF Sociedad Anonima are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, VIST and YPF feels like a great value stock at the moment.
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Vista Oil & Gas, S.A.B. de C.V. Sponsored ADR (VIST) : Free Stock Analysis Report
YPF Sociedad Anonima (YPF) : Free Stock Analysis Report
