Yahoo Finance Are Investors Undervaluing Smart Sand (SND) Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 stock to keep an eye on is Smart Sand (SND). SND is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. SND has a P/S ratio of 0.31. This compares to its industry's average P/S of 0.88.
Finally, investors will want to recognize that SND has a P/CF ratio of 2.46. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 8.92. Over the past 52 weeks, SND's P/CF has been as high as 2.69 and as low as 1.74, with a median of 2.15.
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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