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.
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company value investors might notice is HighPeak Energy (HPK). HPK is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock is trading with P/E ratio of 6.70 right now. For comparison, its industry sports an average P/E of 10.35. Over the past 52 weeks, HPK's Forward P/E has been as high as 20.01 and as low as 6.70, with a median of 10.42.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. HPK has a P/S ratio of 1.45. 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.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>HighPeak Energy, Inc. (HPK) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
%20Declares%20%241.18%20Dividend%20%7C%20Nasdaq&_biz_n=10&rnd=208517&cdn_o=a&_biz_z=1743441928545)
%20Right%20Now%3F%20%7C%20Nasdaq&_biz_n=16&rnd=605499&cdn_o=a&_biz_z=1743441928652)
%20Right%20Now%3F%20%7C%20Nasdaq&rnd=75433&cdn_o=a&_biz_z=1743441928656)