Factors in Patterson-UTI Energy Inc's (NASDAQ:PTEN) current Sell recommendation is a ranking in the company's sector group that is in the middle third, a ranking in its industry group that is in the top third, a numerical calculation of risk/reward that is unattractive, and analytical scores that are near average. PTEN's recommendation is further impacted by being in an industry group and sector that are ranked below average in attractiveness. PTEN is rated as a Sell by means of the Portfolio Grader stock evaluator. With proprietary fundamental and quantitative analytical, this analytical tool assesses nearly 5,000 stocks weekly. PTEN has maintained this ranking for 2 months.
PTEN is classified as a constituent of the 12 company Contract Drilling GICS industry group, which is a segment of the 172 company GICS Industrial Services sector. PTEN's market value is $4.9 billion which falls in the top quarter of its industry group The current Portfolio Grader ranking for PTEN puts it 4 among the 12 companies in this industry group.
The Industrial Services sector is ranked number 20 among the 20 sectors in the Portfolio Grader universe putting it as the least attractive sector of all the GICS sectors. The Contract Drilling industry group is ranked 127 among the 129 industry groups within the GICS sectors, placing it well below-average in terms of the Proprietary Quantitative Score scoring system.
The scores earned by the company are average or below-average scores in 4 of the 8 areas appraised by Portfolio Grader in the ranking of company stocks.
The company's operational scores provide mixed results with a ranking for sales growth that is well above the industry average but rankings for operating margin and earnings growth are below average. Scores for visibility of earnings are superior with a ranking for earnings revisions, earnings surprises and earnings momentum that are discernibly better than average. PTEN's grades for cash flow and return on equity are worse than its industry group average. Patterson-UTI Energy's fundamental scores give PTEN a place in the top quartile of the industry group.
Quantitatively, Portfolio Grader uses the Proprietary Quantitative Score to measure PTEN's shares from the aspect of risk/reward. This unique scoring approach considers the relative value of PTEN's shares based on the recent $18.68 share price of the shares relative to its peers, the market and risk associated with its industry and sector groups. Considering this risk/reward calculation, the company currently scores well below-average in its industry group compared to its peers.
The Proprietary Portfolio Grader stock ranking system assesses roughly 5,000 companies every week based on a number of fundamental and quantitative measures. Stocks are given a letter grade based on their results, with A being 'strong buy' and F being 'strong sell'. Explore the tool here.
Commentary provided by UpTick Data Technologies.