The shares of Patterson-UTI Energy, Inc. (NASDAQ:PTEN) and Abercrombie & Fitch Company (NYSE:ANF) were among the active stocks of the last trading sessions. Patterson-UTI Energy, Inc. (NASDAQ:PTEN) declined to -1.34% closing at the price of $16.94 whereas the shares of Abercrombie & Fitch Company (NYSE:ANF) soared 1.07% with the increase of 0.22 points closing at the price of $20.81. Patterson-UTI Energy, Inc. has currently decrease -23.87% in its stock over the period of 6-months while its rival Abercrombie & Fitch Company subtracted -20.87% in the previous 6-months.
Now we have to analyze the facts that if the stocks were worthy off investors’ money? The facts to analyze here are risks, profitability, returns and price trends.
Returns and Profitability
Profitability and returns are the main reason of investment, the investors are looking for profits that they get and return they should expect over the period of time.
The first and foremost return that is considered while making an investment is the ROI or Return on Investment. The ROI is the ratio between the profit against the cost of investment. Currently the ROI of Patterson-UTI Energy, Inc. (NASDAQ:PTEN) is -3.7% while the ROI of Abercrombie & Fitch Company (NYSE:ANF) is 3.2%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, PTEN’s EBITDA Margin is 5.65 whereas ANF’s is 2.69.
Both the profitability ratios suggest a mixed sentiment for Patterson-UTI Energy, Inc. (NASDAQ:PTEN) and Abercrombie & Fitch Company (NYSE:ANF).
EPS & Surprise Factor
Patterson-UTI Energy, Inc. (NASDAQ:PTEN) reported $-0.1/share EPS for the previous quarter where analysts were predicting an EPS to be $-0.12/share Thus beating the analyst Estimates with a Surprise Factor of 16.7 Percent. While, Abercrombie & Fitch Company (NYSE:ANF) reported EPS of $0.06/share in the last quarter. The analysts projected EPS of $-0.04/share depicting a Surprise of 250 Percent.
Taking a look at Earnings per Share, Abercrombie & Fitch Company tends to be beating the analyst estimates more than Patterson-UTI Energy, Inc.. so ANF is more profitable than PTEN.
Technical Analysis of Patterson-UTI Energy, Inc. & Abercrombie & Fitch Company
Moving average convergence divergence (MACD) shows that Patterson-UTI Energy, Inc. (NASDAQ:PTEN) is on a PRICE RELATIVITY trend While Abercrombie & Fitch Company (NYSE:ANF) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Patterson-UTI Energy, Inc. was in BULLISH territory and Abercrombie & Fitch Company was in BULLISH territory.
PTEN’s current statistics gauge that the stock candle is BEARISH with HIGH volatility. While ANF’s candle is BULLISH with HIGH.
EPS Growth Rate: PTEN’s 22.6% versus ANF’s 18%
Another shareholder value can be analyzed through the EPS growth rate; the next 5 years EPS growth rate is predicted by the analysts after the analyzing the previous trends. The next 5 year EPS growth rate of Patterson-UTI Energy, Inc. (NASDAQ:PTEN) is predicted at 22.6% while Abercrombie & Fitch Company (NYSE:ANF) stands at 18%. These numbers suggest that PTEN is more suitable investment in terms of EPS growth rate.
Financial Risk and Liquidity Concerns
The current ratio and the debt ratio are the two ratios that show the investor how quickly the company is able to payout its debt and how quickly it can cover its obligations. The current ratio of PTEN stands at 1.7 while ANF is at 2.2 whereas the debt ratio of the prior is 0.3 while the debt ratio of the later is 0.
The values of the both ratios suggest that one is more liquid and other investment is more risk free.
While making an investment, another main factor to consider before investing is the analyst recommendation on the scale of 1 to 5 where 1 is strong buy, 2 is buy, 3 is hold, 4 is Sell and 5 is strong sell. Analyst recommend 1.9 for PTEN and 3.1 for ANF which means PTEN has Buy rating whereas ANF has Sell rating.
Another recommendation of analyst that is to be considered worthy is the price target. The mare price or price trend does not suggest the suitability of a stock. The price target set by analyst is also to be considered while investing as it suggests to what extent the stock will rise or fall in the near future. The price target set for PTEN is $21.74 which is 22.08% of its current price while ANF has price target of 21.15 which is 1.61% of its current price.
Valuation is the process of determining the company’s worth for an investor, the valuation ratios give an insight to that worthiness.
PTEN currently has price to earning P/E ratio of 0 whereas ANF has 26.18 while the forward P/E ratio for the prior stands at 0 and for the later it depicts the value of 22.35.
The price to Book P/B for PTEN is 0.98, Price to Sale is at 1.13 and for ANF these ratios stand at 1.24 and 0.39.