Yahoo Finance Are Investors Undervaluing Ranger Energy Services (RNGR) Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 to watch right now is Ranger Energy Services (RNGR). RNGR is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 6.54, while its industry has an average P/E of 13.12. RNGR's Forward P/E has been as high as 16.54 and as low as 6.08, with a median of 8.41, all within the past year.
Another valuation metric that we should highlight is RNGR's P/B ratio of 1.10. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 2.33. Over the past year, RNGR's P/B has been as high as 1.15 and as low as 0.75, with a median of 1.02.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. RNGR has a P/S ratio of 0.46. This compares to its industry's average P/S of 0.8.
Finally, we should also recognize that RNGR has a P/CF ratio of 3.70. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. RNGR's current P/CF looks attractive when compared to its industry's average P/CF of 11.64. RNGR's P/CF has been as high as 6.35 and as low as 2.88, with a median of 3.74, all within the past year.
These are just a handful of the figures considered in Ranger Energy Services'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 RNGR is an impressive value stock right now.
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Ranger Energy Services, Inc. (RNGR) : Free Stock Analysis Report
