Is Newpark Resources (NR) a Great Value Stock Right Now?

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.

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.

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.

Newpark Resources (NR) is a stock many investors are watching right now. NR is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 13.89 right now. For comparison, its industry sports an average P/E of 18.41. Over the past year, NR's Forward P/E has been as high as 46.08 and as low as -18.10, with a median of 19.54.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. NR has a P/S ratio of 0.43. This compares to its industry's average P/S of 0.78.

Finally, we should also recognize that NR has a P/CF ratio of 10.75. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 13.49. NR's P/CF has been as high as 47.71 and as low as -61.98, with a median of 15.34, all within the past year.

Another great Oil and Gas - Field Services stock you could consider is ProPetro Holding (PUMP), which is a # 2 (Buy) stock with a Value Score of A.

ProPetro Holding sports a P/B ratio of 1.16 as well; this compares to its industry's price-to-book ratio of 2.82. In the past 52 weeks, PUMP's P/B has been as high as 1.99, as low as 0.80, with a median of 1.23.

These are just a handful of the figures considered in Newpark Resources and ProPetro Holding'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 NR and PUMP is an impressive value stock right now.

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Newpark Resources, Inc. (NR) : Free Stock Analysis Report
 
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