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Are Investors Undervaluing ProPetro Holding (PUMP) 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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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.
ProPetro Holding (PUMP - Free Report) is a stock many investors are watching right now. PUMP is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.
Another valuation metric that we should highlight is PUMP's P/B ratio of 1.23. 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. PUMP's current P/B looks attractive when compared to its industry's average P/B of 3.37. PUMP's P/B has been as high as 1.99 and as low as 0.94, with a median of 1.35, over the past year.
Finally, we should also recognize that PUMP has a P/CF ratio of 10.68. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 16.43. Within the past 12 months, PUMP's P/CF has been as high as 19.36 and as low as 8.33, with a median of 12.20.
Ranger Energy Services (RNGR - Free Report) may be another strong Oil and Gas - Field Services stock to add to your shortlist. RNGR is a # 2 (Buy) stock with a Value grade of A.
Ranger Energy Services sports a P/B ratio of 1.08 as well; this compares to its industry's price-to-book ratio of 3.37. In the past 52 weeks, RNGR's P/B has been as high as 1.11, as low as 0.70, with a median of 0.98.
These are only a few of the key metrics included in ProPetro Holding and Ranger Energy Services strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, PUMP and RNGR look like an impressive value stock at the moment.
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Are Investors Undervaluing ProPetro Holding (PUMP) 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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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.
ProPetro Holding (PUMP - Free Report) is a stock many investors are watching right now. PUMP is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.
Another valuation metric that we should highlight is PUMP's P/B ratio of 1.23. 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. PUMP's current P/B looks attractive when compared to its industry's average P/B of 3.37. PUMP's P/B has been as high as 1.99 and as low as 0.94, with a median of 1.35, over the past year.
Finally, we should also recognize that PUMP has a P/CF ratio of 10.68. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 16.43. Within the past 12 months, PUMP's P/CF has been as high as 19.36 and as low as 8.33, with a median of 12.20.
Ranger Energy Services (RNGR - Free Report) may be another strong Oil and Gas - Field Services stock to add to your shortlist. RNGR is a # 2 (Buy) stock with a Value grade of A.
Ranger Energy Services sports a P/B ratio of 1.08 as well; this compares to its industry's price-to-book ratio of 3.37. In the past 52 weeks, RNGR's P/B has been as high as 1.11, as low as 0.70, with a median of 0.98.
These are only a few of the key metrics included in ProPetro Holding and Ranger Energy Services strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, PUMP and RNGR look like an impressive value stock at the moment.