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Is W&T Offshore (WTI) Stock Undervalued Right Now?

Zacks Equity Research
Wesco Aircraft Holdings (WAIR) closed the most recent trading day at $10.29, moving +0.78% from the previous trading session.

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.

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 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 W&T Offshore (WTI). WTI is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 7.48. This compares to its industry's average Forward P/E of 13.90. WTI's Forward P/E has been as high as 32.31 and as low as 4.12, with a median of 8.99, all within the past year.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. WTI has a P/S ratio of 1.34. This compares to its industry's average P/S of 1.69.

Finally, investors will want to recognize that WTI has a P/CF ratio of 2.63. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. WTI's current P/CF looks attractive when compared to its industry's average P/CF of 4.44. Over the past 52 weeks, WTI's P/CF has been as high as 5.56 and as low as 1.78, with a median of 3.43.

These are only a few of the key metrics included in W&T Offshore's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, WTI looks like an impressive value stock at the moment.


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