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Should Value Investors Buy Kosmos Energy (KOS) Stock?
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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, 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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 Kosmos Energy (KOS - Free Report) . KOS is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value.
We should also highlight that KOS has a P/B ratio of 0.89. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 1.03. Over the past year, KOS's P/B has been as high as 2.40 and as low as 0.66, with a median of 1.29.
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. KOS has a P/S ratio of 0.62. This compares to its industry's average P/S of 0.79.
Finally, our model also underscores that KOS has a P/CF ratio of 2.06. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 2.85. KOS's P/CF has been as high as 3.97 and as low as 1.53, with a median of 2.38, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Kosmos Energy is likely undervalued currently. And when considering the strength of its earnings outlook, KOS sticks out as one of the market's strongest value stocks.
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Should Value Investors Buy Kosmos Energy (KOS) Stock?
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, 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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 Kosmos Energy (KOS - Free Report) . KOS is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value.
We should also highlight that KOS has a P/B ratio of 0.89. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 1.03. Over the past year, KOS's P/B has been as high as 2.40 and as low as 0.66, with a median of 1.29.
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. KOS has a P/S ratio of 0.62. This compares to its industry's average P/S of 0.79.
Finally, our model also underscores that KOS has a P/CF ratio of 2.06. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 2.85. KOS's P/CF has been as high as 3.97 and as low as 1.53, with a median of 2.38, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Kosmos Energy is likely undervalued currently. And when considering the strength of its earnings outlook, KOS sticks out as one of the market's strongest value stocks.