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, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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.
One company value investors might notice is HighPeak Energy (HPK). HPK is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 7.11, which compares to its industry's average of 10.80. Over the past year, HPK's Forward P/E has been as high as 20.01 and as low as 6.70, with a median of 10.25.
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. HPK has a P/S ratio of 1.53. This compares to its industry's average P/S of 2.04.
These are only a few of the key metrics included in HighPeak Energy's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, HPK looks like an impressive value stock at the moment.
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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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