Yahoo Finance Are Investors Undervaluing Geopark (GPRK) Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
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.
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.
Geopark (GPRK) is a stock many investors are watching right now. GPRK is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. GPRK has a P/S ratio of 0.71. This compares to its industry's average P/S of 1.99.
Finally, investors should note that GPRK has a P/CF ratio of 2.39. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 6.62. Over the past year, GPRK's P/CF has been as high as 2.42 and as low as 1.71, with a median of 1.98.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Geopark is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, GPRK feels like a great value stock at the moment.
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Geopark Ltd (GPRK) : Free Stock Analysis Report
