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Should Value Investors Buy ProPetro Holding (PUMP) Stock?

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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, 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.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One stock to keep an eye on is ProPetro Holding (PUMP - Free Report) . PUMP is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock has a Forward P/E ratio of 9.63. This compares to its industry's average Forward P/E of 16.86. Over the past year, PUMP's Forward P/E has been as high as 79.73 and as low as -28.69, with a median of 18.46.

Another notable valuation metric for PUMP is its P/B ratio of 1.42. Investors use the P/B ratio to look at a stock's market value versus 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 3.13. Within the past 52 weeks, PUMP's P/B has been as high as 1.99 and as low as 0.94, with a median of 1.26.

Finally, we should also recognize that PUMP has a P/CF ratio of 13.71. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 15.26. Over the past 52 weeks, PUMP's P/CF has been as high as 19.36 and as low as 8.33, with a median of 11.78.

Another great Oil and Gas - Field Services stock you could consider is Subsea 7 (SUBCY - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.

Additionally, Subsea 7 has a P/B ratio of 0.63 while its industry's price-to-book ratio sits at 3.13. For SUBCY, this valuation metric has been as high as 0.72, as low as 0.44, with a median of 0.57 over the past year.

These are only a few of the key metrics included in ProPetro Holding and Subsea 7 strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, PUMP and SUBCY look like an impressive value stock at the moment.


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