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Is U.S. Silica Holdings (SLCA) Stock Undervalued Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company to watch right now is U.S. Silica Holdings (SLCA - Free Report) . SLCA is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock holds a P/E ratio of 7.37, while its industry has an average P/E of 10.90. SLCA's Forward P/E has been as high as 21,899.94 and as low as -28,762.11, with a median of 8.44, all within the past year.
Investors should also recognize that SLCA has a P/B ratio of 1.44. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 3.26. Over the past 12 months, SLCA's P/B has been as high as 2.59 and as low as 1.08, with a median of 1.53.
Finally, we should also recognize that SLCA has a P/CF ratio of 5.51. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. SLCA's P/CF compares to its industry's average P/CF of 8.20. Over the past year, SLCA's P/CF has been as high as 11.10 and as low as 4.30, with a median of 6.60.
These are only a few of the key metrics included in U.S. Silica Holdings's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, SLCA looks like an impressive value stock at the moment.