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Are Investors Undervaluing ProPetro Holding (PUMP) Right Now?
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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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company to watch right now is ProPetro Holding (PUMP - Free Report) . PUMP is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.
Another valuation metric that we should highlight is PUMP's P/B ratio of 1.02. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. PUMP's current P/B looks attractive when compared to its industry's average P/B of 2.35. Over the past 12 months, PUMP's P/B has been as high as 1.24 and as low as 0.76, with a median of 0.93.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by 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. PUMP has a P/S ratio of 0.65. This compares to its industry's average P/S of 0.89.
Finally, investors will want to recognize that PUMP has a P/CF ratio of 4. 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. This stock's P/CF looks attractive against its industry's average P/CF of 8.55. Over the past 52 weeks, PUMP's P/CF has been as high as 5.62 and as low as 2.93, with a median of 3.69.
These are only a few of the key metrics included in ProPetro Holding's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, PUMP looks like an impressive value stock at the moment.
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Are Investors Undervaluing ProPetro Holding (PUMP) Right Now?
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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company to watch right now is ProPetro Holding (PUMP - Free Report) . PUMP is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.
Another valuation metric that we should highlight is PUMP's P/B ratio of 1.02. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. PUMP's current P/B looks attractive when compared to its industry's average P/B of 2.35. Over the past 12 months, PUMP's P/B has been as high as 1.24 and as low as 0.76, with a median of 0.93.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by 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. PUMP has a P/S ratio of 0.65. This compares to its industry's average P/S of 0.89.
Finally, investors will want to recognize that PUMP has a P/CF ratio of 4. 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. This stock's P/CF looks attractive against its industry's average P/CF of 8.55. Over the past 52 weeks, PUMP's P/CF has been as high as 5.62 and as low as 2.93, with a median of 3.69.
These are only a few of the key metrics included in ProPetro Holding's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, PUMP looks like an impressive value stock at the moment.