Should Value Investors Buy Smart Sand (SND) Stock?
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 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.
One stock to keep an eye on is Smart Sand (SND). SND is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 12.80, while its industry has an average P/E of 13.34. SND's Forward P/E has been as high as 112.36 and as low as 5.48, with a median of 20.94, all within the past year.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by 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. SND has a P/S ratio of 0.28. This compares to its industry's average P/S of 0.82.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Smart Sand is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, SND feels like a great value stock at the moment.
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