Are Investors Undervaluing Stone Energy (TALO), Right Now?
Zacks focuses its attention on the Zacks Rank system. It emphasizes earnings estimates and revisions in order to identify great stocks. To highlight our strong picks, we pay attention to the most recent value, growth, or momentum trends.
The most popular stock market trend is value investing. This strategy has been proven to work in all market conditions. To find these stocks value investors employ many methods, including tried-and true valuation metrics.
Investors looking for stocks that have specific characteristics can use our Style Scores system in addition to the Zacks Rank. The system’s “Value” category is where value investors are most interested. Stocks that have high Zacks rank and receive “A” grades for value are some of the most valuable stocks on the market.
One company you should be following right now is Stone Energy (TALO).. TALO currently holds a Zacks Rank 2 (Buy) as well as a Value grade A. The stock has a P/E ratio that is 4.64 while the industry averages 5.70. TALO’s Forward PE has varied between 4,178.09 to -3,307.81 with a median of 4.48.
Another important valuation metric for TALO’s is its P/B Ratio of 1.29. P/B is a ratio that investors use to determine a stock’s market value versus its total assets minus all liabilities. The stock’s P/B is solid, compared to its industry average of 2.98. TALO has had a P/B as high as 2.99 and as low at 1.05 over the past 52 weeks with a median value of 1.54.
The P/S Ratio is another useful tool for value investors. The price divided by sales is the P/S ratio. Because sales are difficult to manipulate on income statements, some prefer this metric. It could also be a more accurate performance indicator. TALO has a ratio of 0.92 to its industry average P/S. This compares to the industry’s average P/S rate of 1.51.
Finally, investors should be aware that TALO’s P/CF ratio is 1.63. This ratio shows a company’s operating cashflow and can be used as a guide to identify undervalued firms, especially when you consider their excellent cash outlook. The stock’s current P/CF compares to its industry average of 5.31. Over the last 52 weeks, TALO has seen its P/CF fluctuate between 6.14 and -3.59 with a median of 2.72.
These are just a few examples of Stone Energy’s Value grade. These figures show that the stock is probably being undervalued right now. This, combined with the strong earnings outlook, makes TALO a compelling value stock.
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Talos Energy Inc. (TALO) : Free Stock Analysis Report