Are Investors Undervaluing W&T Offshore (WTI) Right Now?
Zacks focuses on its proven ranking system. It places emphasis on earnings estimates, revisions, and other factors to help us find winners. We understand that investors have their own strategies. Therefore, we continuously monitor trends in value, growth and momentum to help our readers find great companies.
Value investing is the most popular way to find great stocks regardless of market conditions. Value investors use traditional valuation metrics analysis to identify stocks they believe are undervalued and make profits.
To find stocks that have specific characteristics, investors can look at the Zacks Rank in addition to our Style Scores system. Value investors, for example, will be focusing on the “Value” category. Stocks that have high Zacks rank and “A” grades in Value will be the best value stocks today.
One thing that investors in company value might notice is W&T Offshore (WTI). WTI currently holds a Zacks Rank 2 (Buy), and a Value grade A. The stock currently trades with a P/E ratio at 4.01. Its industry average P/E is 5.88. WTI’s Forward Price to Earn has varied between 14.76 and 2.30 with a median of 4.17. This all happened within the last year.
The P/S ratio is a favorite metric for value investors. It simply involves dividing the stock’s price by the company’s annual sales. Because revenue cannot be controlled, this metric is preferred. Sales are often a more accurate indicator of performance. WTI’s P/S ratio is 0.88. This compares to the industry average P/S rate of 1.5.
WTI’s P/CF rate of 2.18 is something investors should be aware of. This metric measures the firm’s cash flow, and can be used to determine stocks undervalued. The company’s current P/CF is solid compared to the industry’s average of 7.38. WTI has had a P/CF of as high as 29.01, and as low at 2.06, over 52 weeks with a median of 6.76.
These figures are just a handful of the metrics value investors tend to look at, but they help show that W&T Offshore is likely being undervalued right now. WTI, based on these factors and the strength of its earnings outlook makes it a great value stock.
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W&T Offshore, Inc. (WTI) : Free Stock Analysis Report