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Should Value Investors Buy ProPetro Holding (PUMP) Stock?
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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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on is ProPetro Holding (PUMP - Free Report) . PUMP is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A.
Another valuation metric that we should highlight is PUMP's P/B ratio of 1.43. The P/B is a method of comparing a stock's market value to 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 2.56. Over the past year, PUMP's P/B has been as high as 1.99 and as low as 0.94, with a median of 1.35.
Finally, we should also recognize that PUMP has a P/CF ratio of 11.29. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. PUMP's current P/CF looks attractive when compared to its industry's average P/CF of 11.75. PUMP's P/CF has been as high as 19.36 and as low as 8.69, with a median of 12.20, all within the past year.
Investors could also keep in mind Ranger Energy Services (RNGR - Free Report) , an Oil and Gas - Field Services stock with a Zacks Rank of # 1 (Strong Buy) and Value grade of A.
Additionally, Ranger Energy Services has a P/B ratio of 1.06 while its industry's price-to-book ratio sits at 2.56. For RNGR, this valuation metric has been as high as 1.11, as low as 0.70, with a median of 0.98 over the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that ProPetro Holding and Ranger Energy Services are likely undervalued currently. And when considering the strength of its earnings outlook, PUMP and RNGR sticks out as one of the market's strongest value stocks.
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Should Value Investors Buy ProPetro Holding (PUMP) Stock?
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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on is ProPetro Holding (PUMP - Free Report) . PUMP is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A.
Another valuation metric that we should highlight is PUMP's P/B ratio of 1.43. The P/B is a method of comparing a stock's market value to 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 2.56. Over the past year, PUMP's P/B has been as high as 1.99 and as low as 0.94, with a median of 1.35.
Finally, we should also recognize that PUMP has a P/CF ratio of 11.29. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. PUMP's current P/CF looks attractive when compared to its industry's average P/CF of 11.75. PUMP's P/CF has been as high as 19.36 and as low as 8.69, with a median of 12.20, all within the past year.
Investors could also keep in mind Ranger Energy Services (RNGR - Free Report) , an Oil and Gas - Field Services stock with a Zacks Rank of # 1 (Strong Buy) and Value grade of A.
Additionally, Ranger Energy Services has a P/B ratio of 1.06 while its industry's price-to-book ratio sits at 2.56. For RNGR, this valuation metric has been as high as 1.11, as low as 0.70, with a median of 0.98 over the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that ProPetro Holding and Ranger Energy Services are likely undervalued currently. And when considering the strength of its earnings outlook, PUMP and RNGR sticks out as one of the market's strongest value stocks.