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Should Value Investors Buy Stone Energy (TALO) Stock?
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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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.
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.
Stone Energy (TALO - Free Report) is a stock many investors are watching right now. TALO is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. TALO has a P/S ratio of 0.92. This compares to its industry's average P/S of 2.15.
Finally, investors will want to recognize that TALO has a P/CF ratio of 1.50. 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. TALO's P/CF compares to its industry's average P/CF of 5.38. Over the past 52 weeks, TALO's P/CF has been as high as 2.79 and as low as 1.46, with a median of 1.90.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Stone Energy is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, TALO feels like a great value stock at the moment.
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Should Value Investors Buy Stone Energy (TALO) Stock?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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.
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.
Stone Energy (TALO - Free Report) is a stock many investors are watching right now. TALO is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. TALO has a P/S ratio of 0.92. This compares to its industry's average P/S of 2.15.
Finally, investors will want to recognize that TALO has a P/CF ratio of 1.50. 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. TALO's P/CF compares to its industry's average P/CF of 5.38. Over the past 52 weeks, TALO's P/CF has been as high as 2.79 and as low as 1.46, with a median of 1.90.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Stone Energy is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, TALO feels like a great value stock at the moment.