PUMP is an Industry Under-Perform

As of August 21st, 2024, ProPetro Holding with ticker PUMP trades at $8.01.

Based on comparison of the most current price action, financial statements, and Wall Street analyst forecasts, ProPetro Holding is rated as an Industry Under-Perform in Energy Equipment & Services. Our return forecast is for ProPetro Holding to underperform the market average returns by -11% in the next twelve months.

PUMP is viewed as one of the worst companies in its industry by Wall Street analysts. PUMP’s financial and price momentum show average growth. ProPetro Holding is cheaper than most firms in its industry. It has poor quality financial statements.

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Hedgy Reports breaks down company historical and forecasted financial fundamentals to gain perspective on its Cheapness, Profitability, Sentiment, and Momentum. These four metrics are defined differently in each industry. The specific formulation of each metric is determined using Artificial Intelligence. The AI was trained using forty years of data to determine how each metrics’ formulation best predicts stock returns. For example, a dividend increase may be an important determinant of a Utilities firm’s return but a poor predictor of a technology firm’s return direction. Our Artificial Intelligence uses these four gauges to predict market-relative returns from machine learned industry-specific weightings of Cheapness, Profitability, Sentiment, and Momentum. The predictive efficacy of each gauge varies by industry. We predict ProPetro Holding will underperform market returns by -11% in the next twelve months. The bar chart below compares returns forecasts of select companies in Energy Equipment & Services.

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This Hedgy Report compares a firm to its industry peers. The report uses industry scatter charts to compare firms’ Cheapness relative to their Momentum and companies’ Profitability vs their Sentiment. Seeing the industry with these lenses uncovers interesting investment opportunities. The side panels provide time series charts of the trends in Cheapness, Momentum, Profitability, and Sentiment.

$\label{fig:industryReturns1MBarChart}Energy Equipment & Services Month on Month Returns (%)$ Energy Equipment & Services Month on Month Returns (%)

$\label{fig:industryReturns12MBarChart}Energy Equipment & Services Year on Year Returns (%)$ Energy Equipment & Services Year on Year Returns (%)

In its industry, ProPetro Holding was a relatively poor performer over the prior month. PUMP was a relatively poor performer over the past twelve months compared to peers.

$\label{fig:tsX1} Momentum Percentile history$ Momentum Percentile history

$\label{fig:tsY1} Cheapness Percentile history$ Cheapness Percentile history

ProPetro Holding is a firm with average growth in its financials based on its Momentum Percentile and relatively cheap when measured by its Cheapness Percentile relative to similar Energy Equipment & Services companies. Its Momentum Percentile looks similar to its historical levels. Its Cheapness Percentile is improving compared to prior levels. The Cheapness vs Momentum scatter chart has the best companies in the top-right quadrant. The worst companies are in the bottom-left quadrant. The top-right contains firms that are cheaper and demonstrated stronger momentum. They are most desirable. The bottom-left space displays expensive firms with poor momentum. Machine learning methods suggest that the top-right firms outperform the bottom-left firms.

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$\label{fig:tsX2} Sentiment Percentile history$ Sentiment Percentile history

$\label{fig:tsY2} Profitability Percentile history$ Profitability Percentile history

ProPetro Holding is viewed as one of the worst companies in its industry by Wall Street analysts based on its Sentiment Percentile and of relatively poor quality when measured by its Profitability Percentile relative to similar Energy Equipment & Services companies. This combination is typically a bad indicator because the stock has poor quality financials and Wall Street analysts are strongly bearish on an industry-relative basis. Its Sentiment Percentile is the lowest its been. Its Profitability Percentile is improving compared to prior levels. The Profitability vs Sentiment scatter chart has the best companies in the top-right quadrant. The worst companies are in the bottom-left quadrant. The top-right shows firms with the best profitability and the strongest analyst sentiment. They are the most desirable. The bottom-left space has the least profitable firms with the worst market sentiment. The top-right firms typically outperform the bottom-left firms.

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Hedgy Analytics uses artificial intelligence to provide stock reports on most US stocks. You can screen stocks by Sentiment, Profitability, Momentum, and Cheapness across all industries with a visual interactive screener here.

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