That’s why Magnolia Oil & Gas Corp (MGY) is a strong value stock

It doesn’t matter how old you are or how much experience you have: making the most of the stock market’s opportunities and investing confidently are the common goals of all investors.

Even if you have an investing style you rely on, finding great stocks is made easier with Zacks Style Scores, complementary indicators that evaluate stocks based on value, growth and/or momentum characteristics.

Why investors should pay attention to this value stock

Unlike growth or momentum investors, value investors are concerned with finding good stocks at good prices and figuring out which companies are trading below their true value before the broader market notices. The Value Style Score uses metrics such as P/E, PEG, price-to-sales and price-to-cash flow to select the most attractive and cheapest stocks.

Magnolia Oil & Gas Corp (MGY)

Magnolia Oil & Gas is an independent upstream operator engaged in the exploration, development and production of natural gas, crude oil and natural gas liquids. Headquartered in Houston, Texas, the company is focused on the Eagle Ford Shale and Austin Chalk formations in South Texas.

MGY has a Zacks Rank of 3 (Hold), a Value Style Score of B and a VGM Score of B. Compared to the Oil and Gas Exploration and Production in the United States’ P/E ratio of 10.4, shares of Magnolia Oil & Gas Corp are trading at a P/E ratio of 11.3. MGY also has a PEG ratio of 1.4, a price-to-cash-flow ratio of 7.3 and a price-to-sales ratio of 4.2.

Value investors don’t just look at a company’s valuation metrics; positive earnings also play a crucial role. Two analysts have upgraded their earnings estimates for fiscal year 2024 in the past 60 days. The Zacks Consensus Estimate has increased by $0.07 to $2.25 per share. MGY has an average earnings surprise of 2%.

Investors should take the time to consider MGY for their portfolio because of its solid Zacks Rank, notable earnings and valuation metrics, and impressive Value and VGM Style Scores.

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