Yahoo Finance Should Value Investors Buy NexTier Oilfield Solutions (NEX) Stock?
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 to watch right now is NexTier Oilfield Solutions (NEX). NEX is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.
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. NEX has a P/S ratio of 0.69. This compares to its industry's average P/S of 0.91.
Finally, investors will want to recognize that NEX has a P/CF ratio of 5.88. 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. This stock's P/CF looks attractive against its industry's average P/CF of 11.71. Over the past 52 weeks, NEX's P/CF has been as high as 34.69 and as low as 4.44, with a median of 8.58.
If you're looking for another solid Oil and Gas - Field Services value stock, take a look at ProPetro Holding (PUMP). PUMP is a # 1 (Strong Buy) stock with a Value score of A.
Additionally, ProPetro Holding has a P/B ratio of 1.36 while its industry's price-to-book ratio sits at 2.56. For PUMP, this valuation metric has been as high as 1.99, as low as 0.94, with a median of 1.36 over the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that NexTier Oilfield Solutions and ProPetro Holding are likely undervalued currently. And when considering the strength of its earnings outlook, NEX and PUMP sticks out as one of the market's strongest value stocks.
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NexTier Oilfield Solutions Inc. (NEX) : Free Stock Analysis Report
ProPetro Holding Corp. (PUMP) : Free Stock Analysis Report
