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Is Unit (UNT) a Great Value Stock Right Now?

Zacks Equity Research

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

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 company value investors might notice is Unit (UNT). UNT is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock is trading with P/E ratio of 9.35 right now. For comparison, its industry sports an average P/E of 18.94. Over the last 12 months, UNT's Forward P/E has been as high as 31.82 and as low as 8.32, with a median of 22.57.

Another notable valuation metric for UNT is its P/B ratio of 0.55. 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. UNT's current P/B looks attractive when compared to its industry's average P/B of 1.27. Within the past 52 weeks, UNT's P/B has been as high as 1.04 and as low as 0.43, with a median of 0.83.

These are just a handful of the figures considered in Unit'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 UNT is an impressive value stock right now.


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