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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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.
National Energy Services Reunited (NESR) is a stock many investors are watching right now. NESR is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 9.39. This compares to its industry's average Forward P/E of 18.03. NESR's Forward P/E has been as high as 9.73 and as low as 4.36, with a median of 6.24, all within the past year.
We should also highlight that NESR has a P/B ratio of 1.05. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. NESR's current P/B looks attractive when compared to its industry's average P/B of 1.58. Within the past 52 weeks, NESR's P/B has been as high as 1.09 and as low as 0.57, with a median of 0.90.
Finally, investors should note that NESR has a P/CF ratio of 4.54. 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. NESR's current P/CF looks attractive when compared to its industry's average P/CF of 10.95. Over the past 52 weeks, NESR's P/CF has been as high as 4.70 and as low as 2.39, with a median of 3.13.
These figures are just a handful of the metrics value investors tend to look at, but they help show that National Energy Services Reunited is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, NESR feels like a great value stock at the moment.
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National Energy Services Reunited (NESR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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