Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 HighPeak Energy (HPK). HPK 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 10.58 right now. For comparison, its industry sports an average P/E of 11.41. Over the past year, HPK's Forward P/E has been as high as 37.19 and as low as 4.52, with a median of 13.98.
Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by sales. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. HPK has a P/S ratio of 0.99. This compares to its industry's average P/S of 1.98.
Value investors will likely look at more than just these metrics, but the above data helps show that HighPeak Energy is likely undervalued currently. And when considering the strength of its earnings outlook, HPK sticks out as one of the market's strongest value stocks.
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HighPeak Energy, Inc. (HPK): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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