Yahoo Finance Are Investors Undervaluing Riley Exploration Permian (REPX) 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 use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 stock to keep an eye on is Riley Exploration Permian (REPX). REPX is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.
Another notable valuation metric for REPX is its P/B ratio of 1.26. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 2.27. Over the past 12 months, REPX's P/B has been as high as 2.61 and as low as 1.13, with a median of 1.71.
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. REPX has a P/S ratio of 1.51. This compares to its industry's average P/S of 1.77.
Finally, investors will want to recognize that REPX has a P/CF ratio of 3.02. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 6.26. Over the past 52 weeks, REPX's P/CF has been as high as 5 and as low as 2.69, with a median of 3.60.
These are just a handful of the figures considered in Riley Exploration Permian'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 REPX is an impressive value stock right now.
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Riley Exploration Permian, Inc. (REPX) : Free Stock Analysis Report
