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Is Nabors Industries (NBR) a Great Value Stock Right Now?

·3 min read

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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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 to watch right now is Nabors Industries (NBR). NBR is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. NBR has a P/S ratio of 0.57. This compares to its industry's average P/S of 1.28.

Finally, investors will want to recognize that NBR has a P/CF ratio of 6.21. 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 23.79. Over the past year, NBR's P/CF has been as high as 19.62 and as low as 2.58, with a median of 5.78.

Precision Drilling (PDS) may be another strong Oil and Gas - Drilling stock to add to your shortlist. PDS is a # 2 (Buy) stock with a Value grade of A.

Furthermore, Precision Drilling holds a P/B ratio of 0.93 and its industry's price-to-book ratio is 0.79. PDS's P/B has been as high as 1.23, as low as 0.37, with a median of 0.64 over the past 12 months.

These are only a few of the key metrics included in Nabors Industries and Precision Drilling strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, NBR and PDS look like an impressive value stock at the moment.


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Nabors Industries Ltd. (NBR) : Free Stock Analysis Report
 
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