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Are Investors Undervaluing U.S. Silica Holdings (SLCA) Right Now?

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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.

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.

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.

U.S. Silica Holdings (SLCA - Free Report) is a stock many investors are watching right now. SLCA is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 7.03. This compares to its industry's average Forward P/E of 11.32. Over the last 12 months, 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.

Another valuation metric that we should highlight is SLCA's P/B ratio of 1.41. 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. SLCA's current P/B looks attractive when compared to its industry's average P/B of 3.50. Over the past year, SLCA's P/B has been as high as 2.59 and as low as 1.11, with a median of 1.53.

Finally, our model also underscores that SLCA has a P/CF ratio of 5.42. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 9.16. Over the past 52 weeks, SLCA's P/CF has been as high as 11.10 and as low as 4.38, with a median of 6.60.

Investors could also keep in mind South32 (SOUHY - Free Report) , an Mining - Miscellaneous stock with a Zacks Rank of # 1 (Strong Buy) and Value grade of A.

South32 sports a P/B ratio of 1.18 as well; this compares to its industry's price-to-book ratio of 3.50. In the past 52 weeks, SOUHY's P/B has been as high as 1.92, as low as 0.98, with a median of 1.33.

These are just a handful of the figures considered in U.S. Silica Holdings and South32's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that SLCA and SOUHY is an impressive value stock right now.


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U.S. Silica Holdings, Inc. (SLCA) - free report >>

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