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Are Investors Undervaluing RPC (RES) Right Now?
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 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.
One stock to keep an eye on is RPC (RES - Free Report) . RES is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock has a Forward P/E ratio of 4.57. This compares to its industry's average Forward P/E of 11.85. Over the past 52 weeks, RES's Forward P/E has been as high as 33.57 and as low as 4.57, with a median of 11.01.
Another valuation metric that we should highlight is RES's P/B ratio of 2. 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 2.21. Over the past 12 months, RES's P/B has been as high as 4.13 and as low as 1.79, with a median of 2.43.
Finally, investors should note that RES has a P/CF ratio of 5.69. 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. RES's P/CF compares to its industry's average P/CF of 10.37. Over the past year, RES's P/CF has been as high as 31.05 and as low as 5.69, with a median of 9.67.
These are just a handful of the figures considered in RPC'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 RES is an impressive value stock right now.