Yahoo Finance Are Investors Undervaluing NexTier Oilfield Solutions (NEX) Right Now?
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.
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.
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.
One company value investors might notice is NexTier Oilfield Solutions (NEX). NEX is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.
Another valuation metric that we should highlight is NEX's P/B ratio of 1.74. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 1.96. NEX's P/B has been as high as 5.33 and as low as 1.71, with a median of 3.13, over the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. NEX has a P/S ratio of 0.5. This compares to its industry's average P/S of 0.62.
Finally, investors will want to recognize that NEX has a P/CF ratio of 2.23. 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. NEX's P/CF compares to its industry's average P/CF of 8.63. Over the past year, NEX's P/CF has been as high as 21.96 and as low as 2.19, with a median of 6.04.
Another great Oil and Gas - Field Services stock you could consider is Smart Sand (SND), which is a # 1 (Strong Buy) stock with a Value Score of A.
Furthermore, Smart Sand holds a P/B ratio of 0.31 and its industry's price-to-book ratio is 1.96. SND's P/B has been as high as 0.80, as low as 0.26, with a median of 0.35 over the past 12 months.
Value investors will likely look at more than just these metrics, but the above data helps show that NexTier Oilfield Solutions and Smart Sand are likely undervalued currently. And when considering the strength of its earnings outlook, NEX and SND sticks out as one of the market's strongest value stocks.
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NexTier Oilfield Solutions Inc. (NEX) : Free Stock Analysis Report
Smart Sand (SND) : Free Stock Analysis Report
