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.
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.
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.
One company value investors might notice is Helix Energy Solutions Group (HLX). HLX is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 20.3. This compares to its industry's average Forward P/E of 24.11. Over the past 52 weeks, HLX's Forward P/E has been as high as 33.05 and as low as 7.83, with a median of 13.36.
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. HLX has a P/S ratio of 1.14. This compares to its industry's average P/S of 1.38.
Finally, investors will want to recognize that HLX has a P/CF ratio of 4.91. 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. HLX's current P/CF looks attractive when compared to its industry's average P/CF of 13.24. Over the past year, HLX's P/CF has been as high as 9.68 and as low as 4.11, with a median of 6.20.
If you're looking for another solid Oil and Gas - Field Services value stock, take a look at NCS Multistage (NCSM). NCSM is a Zacks Rank of #2 (Buy) stock with a Value score of A.
NCS Multistage also has a P/B ratio of 1.01 compared to its industry's price-to-book ratio of 3.00. Over the past year, its P/B ratio has been as high as 1.05, as low as 0.38, with a median of 0.62.
These are just a handful of the figures considered in Helix Energy Solutions Group and NCS Multistage's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that HLX and NCSM is an impressive value stock right now.
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Helix Energy Solutions Group, Inc. (HLX): Free Stock Analysis Report
NCS Multistage Holdings, Inc. (NCSM): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).