 Looking into the current session, Abraxas Petroleum Inc. NASDAQ: AXAS shares are trading at 0.33, after a 14.10 increase. Moreover, over the past month, the stock increased by 189.71, but in the past year, fell by 75.91. Shareholders might be interested in knowing whether the stock is undervalued, even if the company is performing up to par in the current session.The stock is currently trading above from its 52 week low by 267.67. Assuming that all other factors are held constant, this could present itself as an opportunity for investors trying to diversify their portfolio with Oil Gas EP; stocks, and capitalize on the lower share price observed over the year.The PE ratio is used by long-term shareholders to assess the companys market performance against aggregate market data, historical earnings, and the industry at large. A lower PE indicates that shareholders do not expect the stock to perform better in the future, and that the company is probably undervalued. It shows that shareholders are less than willing to pay a high share price, because they do not expect the company to exhibit growth, in terms of future earnings.Depending on the particular phase of a business cycle, some industries will perform better than others.Compared to the aggregate PE ratio of the 6.09 in the Oil Gas EP; industry, Abraxas Petroleum has a lower PE ratio of 0.83. Shareholders might be inclined to think that they might perform worse than its industry peers. Its also possible that the stock is undervalued.There are many limitations to price to earnings ratio. It is sometimes difficult to determine the nature of the earnings makeup of a company. Shareholders might not get what theyre looking for, from trailing earnings.See more from Benzinga 12 Energy Stocks Moving In Fridays Pre-Market Session 19 Energy Stocks Moving In Tuesdays Pre-Market Session 19 Energy Stocks Moving In Fridays Pre-Market SessionC 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved. 