Why This 1 Value Stock Could Be a Great Addition to Your Portfolio
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.
Achieving those goals is made easier with the Zacks Style Scores, a unique set of guidelines that rates stocks based on popular investing methodologies, namely value, growth, and momentum. The Style Scores can help you narrow down which stocks are better for your portfolio and which ones can beat the market over the long-term.
Why Investors Should Pay Attention to This Value Stock
Finding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to highlight the most attractive and discounted stocks.
Liberty Oilfield Services (LBRT)
Liberty Energy (previously Liberty Oilfield Services) is a premier provider of hydraulic fracturing and other auxiliary services to onshore exploration and production (E&P) companies in North America. Hydraulic fracturing is a method used to extract oil and natural gas by blasting underground rock formations with a mixture of water, sand and chemicals.
LBRT is a Zacks Rank #2 (Buy) stock, with a Value Style Score of A and VGM Score of A. Shares are currently trading at a forward P/E of 6.3X for the current fiscal year compared to the Oil and Gas - Field Services industry's P/E of 20.2X. Additionally, LBRT has a PEG Ratio of 0.8 and a Price/Cash Flow ratio of 4.8X. Value investors should also note LBRT's Price/Sales ratio of 0.7X.
Value investors don't just pay attention to a company's valuation ratios; positive earnings play a crucial role, too. Four analysts revised their earnings estimate upwards in the last 60 days for fiscal 2023. The Zacks Consensus Estimate has increased $0.04 to $3.12 per share. LBRT has an average earnings surprise of 12.1%.
With strong valuation and earnings metrics, a good Zacks Rank, and top-tier Value and VGM Style Scores, investors should strongly think about adding LBRT to their portfolios.
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Liberty Energy Inc. (LBRT) : Free Stock Analysis Report
