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Are Investors Undervaluing Liberty Energy (LBRT) Right Now?
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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One stock to keep an eye on is Liberty Energy (LBRT - Free Report) . LBRT is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 4.87, while its industry has an average P/E of 13.65. LBRT's Forward P/E has been as high as 207.30 and as low as -14.47, with a median of 12.73, all within the past year.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. LBRT has a P/S ratio of 0.82. This compares to its industry's average P/S of 0.87.
Finally, our model also underscores that LBRT has a P/CF ratio of 5.85. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 8.90. LBRT's P/CF has been as high as 33.38 and as low as 4.84, with a median of 19.40, all within the past year.
Another great Oil and Gas - Field Services stock you could consider is Ranger Energy Services (RNGR - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
Ranger Energy Services also has a P/B ratio of 1.03 compared to its industry's price-to-book ratio of 1.93. Over the past year, its P/B ratio has been as high as 1.11, as low as 0.70, with a median of 0.98.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Liberty Energy and Ranger Energy Services are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, LBRT and RNGR feels like a great value stock at the moment.
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Are Investors Undervaluing Liberty Energy (LBRT) Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One stock to keep an eye on is Liberty Energy (LBRT - Free Report) . LBRT is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 4.87, while its industry has an average P/E of 13.65. LBRT's Forward P/E has been as high as 207.30 and as low as -14.47, with a median of 12.73, all within the past year.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. LBRT has a P/S ratio of 0.82. This compares to its industry's average P/S of 0.87.
Finally, our model also underscores that LBRT has a P/CF ratio of 5.85. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 8.90. LBRT's P/CF has been as high as 33.38 and as low as 4.84, with a median of 19.40, all within the past year.
Another great Oil and Gas - Field Services stock you could consider is Ranger Energy Services (RNGR - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
Ranger Energy Services also has a P/B ratio of 1.03 compared to its industry's price-to-book ratio of 1.93. Over the past year, its P/B ratio has been as high as 1.11, as low as 0.70, with a median of 0.98.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Liberty Energy and Ranger Energy Services are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, LBRT and RNGR feels like a great value stock at the moment.