Why This 1 Value Stock Could Be a Great Addition to Your Portfolio

Zacks
03-31

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.

Equinor (EQNR)

Headquartered in Stavanger, Norway, Equinor ASA is one of the premier integrated energy companies in the world, with operations spreading across 30 countries. In Europe, the company is the second-largest supplier of natural gas. Equinor is also a leading seller of crude oil. Over the years, the company has developed its expertise to expand upstream operations outside of conventional offshore resources to the prolific shale oil and gas plays. Importantly, at 2024-end, the company had estimated proved reserves of 5.571 billion barrels of oil equivalent (Boe), reflecting an increase of 358 million Boe from 2023-end. The reserve replacement ratio was 151% in 2024.

EQNR is a Zacks Rank #3 (Hold) stock, with a Value Style Score of A and VGM Score of B. Shares are currently trading at a forward P/E of 7.3X for the current fiscal year compared to the Oil and Gas - Refining and Marketing industry's P/E of 17X. Additionally, EQNR has a PEG Ratio of 0.6 and a Price/Cash Flow ratio of 3.8X. Value investors should also note EQNR's Price/Sales ratio of 0.7X.

A company's earnings performance is important for value investors as well. For fiscal 2025, two analysts revised their earnings estimate higher in the last 60 days for EQNR, while the Zacks Consensus Estimate has increased $0.03 to $3.59 per share. EQNR also holds an average earnings surprise of 5%.

With strong valuation and earnings metrics, a good Zacks Rank, and top-tier Value and VGM Style Scores, investors should strongly think about adding EQNR to their portfolios.

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This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

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