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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company value investors might notice is Riley Exploration Permian (REPX). REPX is currently sporting a Zacks Rank #1 (Strong Buy), as well as an A grade for Value. The stock holds a P/E ratio of 4.59, while its industry has an average P/E of 11.35. Over the past year, REPX's Forward P/E has been as high as 6.08 and as low as 3.46, with a median of 4.53.
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. REPX has a P/S ratio of 1.94. This compares to its industry's average P/S of 2.16.
Value investors will likely look at more than just these metrics, but the above data helps show that Riley Exploration Permian is likely undervalued currently. And when considering the strength of its earnings outlook, REPX sticks out as one of the market's strongest value stocks.
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Riley Exploration Permian, Inc. (REPX): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).