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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
Ovintiv (OVV) is a stock many investors are watching right now. OVV is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 7.84 right now. For comparison, its industry sports an average P/E of 12.52. OVV's Forward P/E has been as high as 9.97 and as low as 5.23, with a median of 7.66, all within the past year.
Another notable valuation metric for OVV is its P/B ratio of 1.02. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 2.87. OVV's P/B has been as high as 1.16 and as low as 0.80, with a median of 1.01, over the past year.
Finally, we should also recognize that OVV has a P/CF ratio of 3.78. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 6.71. Over the past 52 weeks, OVV's P/CF has been as high as 3.97 and as low as 2.29, with a median of 3.24.
Value investors will likely look at more than just these metrics, but the above data helps show that Ovintiv is likely undervalued currently. And when considering the strength of its earnings outlook, OVV sticks out as one of the market's strongest value stocks.
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Ovintiv Inc. (OVV): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).