Are Continental Resources, Inc. (CLR) stocks overvalued or undervalued?
Investors Observer gives Continental Resources, Inc. (CLR) a strong valuation score of 100 based on its analysis. The proprietary rating system takes into account the underlying health of a company by analyzing its stock price, earnings and rate of growth. CLR currently holds better value than 100% of the shares based on these metrics. Long-term buy and hold investors should find the most relevant valuation ranking system when making investment decisions.
CLR’s 12-month price-to-earnings (PE) ratio of 44.8 puts it above the historical average of around 15. The CLR is poor value at its current trading price, as investors pay more than what it is worth in relation to the company’s profits. . CLR’s last 12-month earnings per share (EPS) of 1.03 does not justify what it is currently trading in the market. However, follower PE ratios do not take into account a company’s projected growth rate, resulting in some companies having high PE ratios due to high growth potentially attractive to investors even though current earnings are weak. The CLR currently has a 12 month forward PEG ratio of 1. The market is currently pricing the CLR fairly against its projected growth due to the PEG ratio being around fair market value of 1. CLR The PEG is derived from its forward price / earnings ratio divided by its growth rate. Because PEG ratios include more fundamentals of a company’s overall health with an additional focus on the future, they are one of the valuation metrics most used by analysts.
CLR’s valuation metrics are adequate at its current price due to a fairly valued PEG ratio despite strong growth. CLR’s PE and PEG are around the market average, resulting in an average valuation score. Click here for the full Continental Resources, Inc. (CLR) stock report.