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ProPetro Holding (PUMP) Gains But Lags Market: What You Should Know

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In the latest trading session, ProPetro Holding (PUMP - Free Report) closed at $9.30, marking a +0.76% move from the previous day. This change lagged the S&P 500's 1.89% gain on the day. Meanwhile, the Dow gained 1%, and the Nasdaq, a tech-heavy index, added 10%.

Prior to today's trading, shares of the oilfield services company had lost 6.01% over the past month. This has lagged the Oils-Energy sector's gain of 5.98% and the S&P 500's gain of 2.3% in that time.

ProPetro Holding will be looking to display strength as it nears its next earnings release, which is expected to be February 21, 2023. The company is expected to report EPS of $0.35, up 275% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $339.68 million, up 38.04% from the year-ago period.

Investors should also note any recent changes to analyst estimates for ProPetro Holding. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. ProPetro Holding is currently a Zacks Rank #1 (Strong Buy).

Investors should also note ProPetro Holding's current valuation metrics, including its Forward P/E ratio of 4.2. Its industry sports an average Forward P/E of 13.28, so we one might conclude that ProPetro Holding is trading at a discount comparatively.

The Oil and Gas - Field Services industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 50, putting it in the top 20% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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