Yahoo Finance Should Value Investors Buy Ranger Energy Services (RNGR) Stock?
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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company value investors might notice is Ranger Energy Services (RNGR). RNGR is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 5.17. This compares to its industry's average Forward P/E of 11.08. Over the past year, RNGR's Forward P/E has been as high as 16.54 and as low as 5.02, with a median of 8.26.
Investors should also recognize that RNGR has a P/B ratio of 0.91. 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 2.19. Over the past 12 months, RNGR's P/B has been as high as 1.11 and as low as 0.78, with a median of 1.02.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. 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 0.4. This compares to its industry's average P/S of 0.64.
Finally, investors will want to recognize that RNGR has a P/CF ratio of 4.16. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 9.71. Over the past year, RNGR's P/CF has been as high as 6.02 and as low as 2.88, with a median of 3.93.
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.
Smart Sand also has a P/B ratio of 0.32 compared to its industry's price-to-book ratio of 2.19. Over the past year, its P/B ratio has been as high as 0.88, as low as 0.26, with a median of 0.37.
These are just a handful of the figures considered in Ranger Energy Services and Smart Sand'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 and SND is an impressive value stock right now.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Ranger Energy Services, Inc. (RNGR) : Free Stock Analysis Report
Smart Sand (SND) : Free Stock Analysis Report
