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Is W&T Offshore (WTI) Stock Undervalued Right Now?


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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find 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 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 W&T Offshore (WTI). WTI is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 9.15, which compares to its industry's average of 11.20. Over the last 12 months, WTI's Forward P/E has been as high as 32.31 and as low as 5.93, with a median of 10.09.

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 popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. WTI has a P/S ratio of 1.81. This compares to its industry's average P/S of 2.16.

Finally, investors will want to recognize that WTI has a P/CF ratio of 3.98. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 6.25. WTI's P/CF has been as high as 5.67 and as low as 1.55, with a median of 3.42, all within the past year.

Value investors will likely look at more than just these metrics, but the above data helps show that W&T Offshore is likely undervalued currently. And when considering the strength of its earnings outlook, WTI sticks out at as one of the market's strongest value stocks.


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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.



This article appears in: Investing , Investing Ideas , Stocks
Referenced Symbols: WTI



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