Are Investors Undervaluing National Energy Services Reunited (NESR) Right Now?
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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 National Energy Services Reunited (NESR). NESR is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 8.33 right now. For comparison, its industry sports an average P/E of 23.90. Over the past year, NESR's Forward P/E has been as high as 20.89 and as low as 6.94, with a median of 9.32.
Another notable valuation metric for NESR is its P/B ratio of 0.72. 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. This company's current P/B looks solid when compared to its industry's average P/B of 1.89. Over the past 12 months, NESR's P/B has been as high as 1.01 and as low as 0.59, with a median of 0.87.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. NESR has a P/S ratio of 0.68. This compares to its industry's average P/S of 0.7.
Finally, we should also recognize that NESR has a P/CF ratio of 4.48. 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. NESR's P/CF compares to its industry's average P/CF of 8.92. Over the past year, NESR's P/CF has been as high as 6.35 and as low as 3.70, with a median of 5.45.
These are just a handful of the figures considered in National Energy Services Reunited'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 NESR is an impressive value stock right now.
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National Energy Services Reunited (NESR) : Free Stock Analysis Report
