Back to top

Image: Bigstock

Should Value Investors Buy Expro Group Holdings (XPRO) Stock?

Read MoreHide Full Article

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

Expro Group Holdings (XPRO - Free Report) is a stock many investors are watching right now. XPRO is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 13.38. This compares to its industry's average Forward P/E of 20.74. Over the past year, XPRO's Forward P/E has been as high as 27.24 and as low as 6.32, with a median of 11.85.

XPRO is also sporting a PEG ratio of 0.67. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. XPRO's PEG compares to its industry's average PEG of 1.95. Within the past year, XPRO's PEG has been as high as 1.25 and as low as 0.53, with a median of 0.89.

Finally, our model also underscores that XPRO has a P/CF ratio of 5.63. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. XPRO's P/CF compares to its industry's average P/CF of 12.46. XPRO's P/CF has been as high as 12.36 and as low as 3.41, with a median of 5.83, all within the past year.

Value investors will likely look at more than just these metrics, but the above data helps show that Expro Group Holdings is likely undervalued currently. And when considering the strength of its earnings outlook, XPRO sticks out as one of the market's strongest value stocks.

Published in