Are Investors Undervaluing Matador Resources (MTDR) Right Now?

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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.Matador Resources (MTDR) is a stock many investors are watching right now. MTDR is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 6.09, which compares to its industry's average of 9.72. Over the past 52 weeks, MTDR's Forward P/E has been as high as 9.96 and as low as 5.51, with a median of 7.20.We should also highlight that MTDR has a P/B ratio of 1.20. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 3.17. Within the past 52 weeks, MTDR's P/B has been as high as 1.98 and as low as 1.20, with a median of 1.46.Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's 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. MTDR has a P/S ratio of 1.86. This compares to its industry's average P/S of 2.02.Finally, we should also recognize that MTDR has a P/CF ratio of 3.51. 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. MTDR's current P/CF looks attractive when compared to its industry's average P/CF of 5.01. Within the past 12 months, MTDR's P/CF has been as high as 5.25 and as low as 3.28, with a median of 4.03.Value investors will likely look at more than just these metrics, but the above data helps show that Matador Resources is likely undervalued currently. And when considering the strength of its earnings outlook, MTDR sticks out at as one of the market's strongest value stocks.5 Stocks Set to DoubleEach 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 >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Matador Resources Company (MTDR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks