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Is Keane Group, Inc. (FRAC) Stock Undervalued Right Now?

Zacks Equity Research

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, 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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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.

Keane Group, Inc. (FRAC) is a stock many investors are watching right now. FRAC is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.

Another notable valuation metric for FRAC is its P/B ratio of 1.28. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 1.33. Over the past year, FRAC's P/B has been as high as 2.82 and as low as 1.07, with a median of 1.88.

Finally, investors will want to recognize that FRAC has a P/CF ratio of 2.03. 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 stock's P/CF looks attractive against its industry's average P/CF of 3.67. Over the past 52 weeks, FRAC's P/CF has been as high as 4.41 and as low as 1.69, with a median of 2.89.

These are just a handful of the figures considered in Keane Group, Inc.'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 FRAC is an impressive value stock right now.


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