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Should Value Investors Buy Smart Sand (SND) Stock?

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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

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 company value investors might notice is Smart Sand (SND - Free Report) . SND is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock is trading with P/E ratio of 6.46 right now. For comparison, its industry sports an average P/E of 11.63. Over the last 12 months, SND's Forward P/E has been as high as 37.75 and as low as -109.37, with a median of -16.55.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. SND has a P/S ratio of 0.33. This compares to its industry's average P/S of 0.69.

Finally, we should also recognize that SND has a P/CF ratio of 2.81. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. SND's current P/CF looks attractive when compared to its industry's average P/CF of 10.15. SND's P/CF has been as high as 29.31 and as low as -8.18, with a median of 4.75, all within the past year.

Another great Oil and Gas - Field Services stock you could consider is Subsea 7 (SUBCY - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.

Subsea 7 also has a P/B ratio of 0.79 compared to its industry's price-to-book ratio of 2.29. Over the past year, its P/B ratio has been as high as 0.96, as low as 0.48, with a median of 0.64.

These are just a handful of the figures considered in Smart Sand and Subsea 7'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 SND and SUBCY is an impressive value stock right now.


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