Building up an investment case requires looking at a stock holistically. Today I’ve chosen to put the spotlight on Carrizo Oil & Gas, Inc. (NASDAQ:CRZO) due to its excellent fundamentals in more than one area. CRZO is a company with a an impressive history of performance, trading at a discount. In the following section, I expand a bit more on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, take a look at the report on Carrizo Oil & Gas here.
Undervalued with solid track record
Over the past few years, CRZO has more than doubled its earnings, with its most recent figure exceeding its annual average over the past five years. In addition to beating its historical values, CRZO also outperformed its industry, which delivered a growth of 61%. This is what investors like to see! CRZO is currently trading below its true value, which means the market is undervaluing the company’s expected cash flow going forward. This mispricing gives investors the opportunity to buy into the stock at a cheap price compared to the value they will be receiving, should analysts’ consensus forecast growth be correct. Also, relative to the rest of its peers with similar levels of earnings, CRZO’s share price is trading below the group’s average. This bolsters the proposition that CRZO’s price is currently discounted.
For Carrizo Oil & Gas, there are three important factors you should further research:
- Future Outlook: What are well-informed industry analysts predicting for CRZO’s future growth? Take a look at our free research report of analyst consensus for CRZO’s outlook.
- Financial Health: Are CRZO’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of CRZO? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.