Why ProPetro Holding Corp (NYSE:PUMP) Could Have A Place In Your Portfolio
Attractive stocks have exceptional fundamentals. In the case of ProPetro Holding Corp (NYSE:PUMP), there’s is a company that has been able to sustain great financial health, trading at an attractive share price. Below, I’ve touched on some key aspects you should know on a high level. For those interested in digger a bit deeper into my commentary, take a look at the report on ProPetro Holding here.
Undervalued with excellent balance sheet
PUMP’s strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This indicates that PUMP has sufficient cash flows and proper cash management in place, which is a crucial insight into the health of the company. PUMP seems to have put its debt to good use, generating operating cash levels of 2.22x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows. PUMP’s share price is trading at below its true value, meaning that the market sentiment for the stock is currently bearish. Investors have the opportunity to buy into the stock to reap capital gains, if PUMP’s projected earnings trajectory does follow analyst consensus growth, which determines my intrinsic value of the company. Also, relative to the rest of its peers with similar levels of earnings, PUMP’s share price is trading below the group’s average. This supports the theory that PUMP is potentially underpriced.
Next Steps:
For ProPetro Holding, I’ve compiled three essential aspects you should look at:
Future Outlook: What are well-informed industry analysts predicting for PUMP’s future growth? Take a look at our free research report of analyst consensus for PUMP’s outlook.
Historical Performance: What has PUMP’s returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of PUMP? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
