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Liberty Oilfield Services (LBRT) Outpaces Stock Market Gains: What You Should Know

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In the latest trading session, Liberty Oilfield Services (LBRT - Free Report) closed at $11.85, marking a +1.98% move from the previous day. This move outpaced the S&P 500's daily gain of 0.56%. At the same time, the Dow added 0.41%, and the tech-heavy Nasdaq gained 1.35%.

Heading into today, shares of the provider of hydraulic fracturing services had lost 23.3% over the past month, lagging the Oils-Energy sector's loss of 8% and the S&P 500's loss of 1.48% in that time.

Wall Street will be looking for positivity from Liberty Oilfield Services as it approaches its next earnings report date. This is expected to be April 19, 2023. In that report, analysts expect Liberty Oilfield Services to post earnings of $0.82 per share. This would mark year-over-year growth of 2833.33%. Meanwhile, our latest consensus estimate is calling for revenue of $1.25 billion, up 57.6% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.42 per share and revenue of $5.25 billion. These totals would mark changes of +62.09% and +26.57%, respectively, from last year.

Any recent changes to analyst estimates for Liberty Oilfield Services should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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. Liberty Oilfield Services is currently a Zacks Rank #2 (Buy).

Digging into valuation, Liberty Oilfield Services currently has a Forward P/E ratio of 3.4. Its industry sports an average Forward P/E of 11.21, so we one might conclude that Liberty Oilfield Services is trading at a discount comparatively.

We can also see that LBRT currently has a PEG ratio of 0.58. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Oil and Gas - Field Services industry currently had an average PEG ratio of 0.4 as of yesterday's close.

The Oil and Gas - Field Services industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 48, putting it in the top 20% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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