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Should Value Investors Buy Liberty Energy (LBRT) Stock?
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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 company to watch right now is Liberty Energy (LBRT - Free Report) . LBRT is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.
Investors should also recognize that LBRT has a P/B ratio of 2.09. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 3.52. Over the past year, LBRT's P/B has been as high as 2.84 and as low as 1.32, with a median of 2.02.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's 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 0.77. This compares to its industry's average P/S of 0.83.
Finally, investors should note that LBRT has a P/CF ratio of 6.14. 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. LBRT's current P/CF looks attractive when compared to its industry's average P/CF of 17.16. Over the past year, LBRT's P/CF has been as high as 33.38 and as low as 4.84, with a median of 21.41.
If you're looking for another solid Oil and Gas - Field Services value stock, take a look at NexTier Oilfield Solutions . NEX is a # 2 (Buy) stock with a Value score of A.
Furthermore, NexTier Oilfield Solutions holds a P/B ratio of 3.22 and its industry's price-to-book ratio is 3.52. NEX's P/B has been as high as 5.33, as low as 1.37, with a median of 3.35 over the past 12 months.
These are only a few of the key metrics included in Liberty Energy and NexTier Oilfield Solutions strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, LBRT and NEX look like an impressive value stock at the moment.
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Should Value Investors Buy Liberty Energy (LBRT) Stock?
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 company to watch right now is Liberty Energy (LBRT - Free Report) . LBRT is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.
Investors should also recognize that LBRT has a P/B ratio of 2.09. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 3.52. Over the past year, LBRT's P/B has been as high as 2.84 and as low as 1.32, with a median of 2.02.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's 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 0.77. This compares to its industry's average P/S of 0.83.
Finally, investors should note that LBRT has a P/CF ratio of 6.14. 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. LBRT's current P/CF looks attractive when compared to its industry's average P/CF of 17.16. Over the past year, LBRT's P/CF has been as high as 33.38 and as low as 4.84, with a median of 21.41.
If you're looking for another solid Oil and Gas - Field Services value stock, take a look at NexTier Oilfield Solutions . NEX is a # 2 (Buy) stock with a Value score of A.
Furthermore, NexTier Oilfield Solutions holds a P/B ratio of 3.22 and its industry's price-to-book ratio is 3.52. NEX's P/B has been as high as 5.33, as low as 1.37, with a median of 3.35 over the past 12 months.
These are only a few of the key metrics included in Liberty Energy and NexTier Oilfield Solutions strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, LBRT and NEX look like an impressive value stock at the moment.