Back to top

Image: Bigstock

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

Read MoreHide Full Article

ProPetro Holding (PUMP - Free Report) closed the most recent trading day at $7.19, moving +0.56% from the previous trading session. This move lagged the S&P 500's daily gain of 1.44%. At the same time, the Dow added 1.26%, and the tech-heavy Nasdaq gained 5.21%.

Heading into today, shares of the oilfield services company had lost 24.9% over the past month, lagging the Oils-Energy sector's loss of 2.11% and the S&P 500's gain of 2.28% in that time.

ProPetro Holding will be looking to display strength as it nears its next earnings release. In that report, analysts expect ProPetro Holding to post earnings of $0.49 per share. This would mark year-over-year growth of 345.45%. Our most recent consensus estimate is calling for quarterly revenue of $410.08 million, up 45.07% from the year-ago period.

PUMP's full-year Zacks Consensus Estimates are calling for earnings of $2.19 per share and revenue of $1.74 billion. These results would represent year-over-year changes of +10850% and +36.28%, respectively.

It is also important to note the recent changes to analyst estimates for ProPetro Holding. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 1.02% higher. ProPetro Holding is currently a Zacks Rank #3 (Hold).

Investors should also note ProPetro Holding's current valuation metrics, including its Forward P/E ratio of 3.27. This valuation marks a discount compared to its industry's average Forward P/E of 11.58.

The Oil and Gas - Field Services industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 89, which puts it in the top 36% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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