Are Investors Undervaluing APA (APA) Right Now?

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.Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. 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 stock to keep an eye on is APA (APA). APA is currently sporting a Zacks Rank #1 (Strong Buy) and an A for Value. The stock is trading with a P/E ratio of 8.22, which compares to its industry's average of 10.57. Over the past year, APA's Forward P/E has been as high as 8.88 and as low as 4.09, with a median of 6.45. Another notable valuation metric for APA is its P/B ratio of 1.23. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. APA's current P/B looks attractive when compared to its industry's average P/B of 3.09. Within the past 52 weeks, APA's P/B has been as high as 1.63 and as low as 0.79, with a median of 1.20.Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. APA has a P/S ratio of 1.48. This compares to its industry's average P/S of 1.96.Finally, we should also recognize that APA has a P/CF ratio of 2.42. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 5.08. Over the past 52 weeks, APA's P/CF has been as high as 3.06 and as low as 1.46, with a median of 2.05.Riley Exploration Permian (REPX) may be another strong Oil and Gas - Exploration and Production - United States stock to add to your shortlist. REPX is a Zacks Rank of #1 (Strong Buy) stock with a Value grade of A.Riley Exploration Permian sports a P/B ratio of 1.05 as well; this compares to its industry's price-to-book ratio of 3.09. In the past 52 weeks, REPX's P/B has been as high as 1.57, as low as 0.92, with a median of 1.16.These figures are just a handful of the metrics value investors tend to look at, but they help show that APA and Riley Exploration Permian are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, APA and REPX feels like a great value stock at the moment.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.9% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>This article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks