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Why Magnolia Oil & Gas Corp (MGY) is a Top Value Stock for the Long-Term

Zacks Equity Research
·2 min read

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.

Achieving those goals is made easier with the Zacks Style Scores, a unique set of guidelines that rates stocks based on popular investing methodologies, namely value, growth, and momentum. The Style Scores can help you narrow down which stocks are better for your portfolio and which ones can beat the market over the long-term.

Why Investors Should Pay Attention to This Value Stock

Finding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to highlight the most attractive and discounted stocks.

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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, TX, the firm is focused on the Eagle Ford Shale and Austin Chalk formations in South Texas.

MGY is a Zacks Rank #3 (Hold) stock, with a Value Style Score of B and VGM Score of B. Shares are currently trading at a forward P/E of 10.8X for the current fiscal year compared to the Oil and Gas - Exploration and Production - United States industry's P/E of 9.2X. Additionally, MGY has a PEG Ratio of 1.4 and a Price/Cash Flow ratio of 6.9X. Value investors should also note MGY's Price/Sales ratio of 4X.

Many value investors pay close attention to a company's earnings as well. For MGY, five analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.18 to $2.25 per share for 2024. Per share MGY boasts an average earnings surprise of 2%.

MGY should be on investors' short lists because of its impressive earnings and valuation fundamentals, a good Zacks Rank, and strong Value and VGM Style Scores.

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Magnolia Oil & Gas Corp (MGY) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research