Should Value Investors Buy Keane Group, Inc. (FRAC) Stock?
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.
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 Keane Group, Inc. (FRAC). FRAC is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.
Another notable valuation metric for FRAC is its P/B ratio of 1.19. 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 stock's P/B looks solid versus its industry's average P/B of 1.28. FRAC's P/B has been as high as 2.82 and as low as 1.08, with a median of 1.96, over the past year.
Finally, investors will want to recognize that FRAC has a P/CF ratio of 1.88. 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. FRAC's current P/CF looks attractive when compared to its industry's average P/CF of 3.54. Over the past year, FRAC's P/CF has been as high as 4.41 and as low as 1.71, with a median of 2.98.
These are only a few of the key metrics included in Keane Group, Inc.'s strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, FRAC looks like an impressive value stock at the moment.
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