Back to top

Image: Bigstock

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

Read MoreHide Full Article

In the latest trading session, ProPetro Holding (PUMP - Free Report) closed at $6.84, marking a +0.29% move from the previous day. This change lagged the S&P 500's 0.56% gain on the day. Elsewhere, the Dow gained 0.41%, while the tech-heavy Nasdaq added 1.35%.

Coming into today, shares of the oilfield services company had lost 20.79% in the past month. In that same time, the Oils-Energy sector lost 8%, while the S&P 500 lost 1.48%.

Wall Street will be looking for positivity from ProPetro Holding as it approaches its next earnings report date. In that report, analysts expect ProPetro Holding to post earnings of $0.48 per share. This would mark year-over-year growth of 336.36%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $408.5 million, up 44.51% from the year-ago period.

PUMP's full-year Zacks Consensus Estimates are calling for earnings of $2.18 per share and revenue of $1.74 billion. These results would represent year-over-year changes of +10800% and +35.87%, respectively.

It is also important to note the recent changes to analyst estimates for ProPetro Holding. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Over the past month, the Zacks Consensus EPS estimate has moved 2.24% lower. ProPetro Holding is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, ProPetro Holding is currently trading at a Forward P/E ratio of 3.13. This valuation marks a discount compared to its industry's average Forward P/E of 11.21.

The Oil and Gas - Field Services industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 48, which puts 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.

To follow PUMP in the coming trading sessions, be sure to utilize

See More Zacks Research for These Tickers

Normally $25 each - click below to receive one report FREE:

ProPetro Holding Corp. (PUMP) - free report >>

Published in