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

Zacks Equity Research

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.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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 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 19.08. This compares to its industry's average Forward P/E of 19.57. WTI's Forward P/E has been as high as 93.84 and as low as -16,771.26, with a median of 13.82, all within the past year.

Finally, our model also underscores that WTI has a P/CF ratio of 1.90. 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. WTI's current P/CF looks attractive when compared to its industry's average P/CF of 5.44. Over the past 52 weeks, WTI's P/CF has been as high as 3.08 and as low as 1.57, with a median of 1.95.

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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