The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Still, we know that each of our readers has their own perspective, so we always monitor the latest trends in value, growth and momentum to find strong picks.
Value investing is undoubtedly one of the most popular methods for finding great stocks in any market environment. Value investors use tried-and-tested metrics and fundamental analysis to find companies they believe are undervalued at their current share price levels.
Zacks has developed the innovative Style Scores system to highlight stocks with specific characteristics. For example, value investors will be interested in stocks with excellent grades in the Value category. When combined with a high Zacks Rank, “A” grades in the Value category are among the strongest value stocks on the market today.
Vaalco Energy (EGY) is a stock that is currently being watched by many investors. EGY currently has a Zacks Rank of #2 (Buy) as well as a Value rating of A.
Another valuation metric we should highlight is EGY’s P/B ratio of 1.35. Investors use the P/B ratio to compare a stock’s market value to its book value, which is defined as total assets minus total liabilities. This stock’s P/B looks solid compared to the industry average of 1.77. Over the past 52 weeks, EGY’s P/B has ranged from 1.65 to 0.90, with a median of 1.11.
Finally, our model also highlights that EGY has a P/CF ratio of 3.36. This metric focuses on a company’s operating cash flow and is often used to find stocks that are undervalued due to their strong cash outlook. EGY’s current P/CF looks attractive when compared to the industry average P/CF of 4.86. EGY’s P/CF has been as high as 4.31 and 2.45 over the past year, with a median of 3.29.
These numbers are just a few of the metrics that value investors often look at, but they show that Vaalco Energy is likely undervalued right now. Considering that and the strong earnings outlook, EGY seems like a great value stock right now.
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Vaalco Energy Inc (EGY): Free Stock Analysis Report
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