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Is Pioneer Natural Resources Co (PXD) Stock Over or Undervalued?

Monday, November 28, 2022 01:37 PM | InvestorsObserver Analysts

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Is Pioneer Natural Resources Co (PXD) Stock Over or Undervalued?

Pioneer Natural Resources Co (PXD) receives a strong valuation ranking of 97 from InvestorsObserver data analysis. The proprietary ranking system focuses on the underlying health of a company through analysis of its stock price, earnings, and growth rate. PXD has a better value than 97% of stocks based on these valuation analytics. Investors primarily focused on buy-and-hold strategies will find the valuation ranking relevant to their goals when making investment decisions.

Valuation Rank - 97
PXD gets a 97 Valuation Rank today. Find out what this means to you and get the rest of the rankings on PXD!

Metrics Analysis

PXD's trailing-12-month Price to Earnings (PE) ratio of 8.9 puts it below the historical average of roughly 15. PXD is a good value at its current trading price as investors are paying less than what its worth in relation to the company's earnings. PXD's trailing-12-month earnings per share (EPS) of 28.09 does justify what it is currently trading at in the market. Trailing PE ratios, however, do not factor in a company's projected growth rate, resulting in some firms having high PE ratios due to high growth potentially enticing investors even if current earnings are low.
PXD currently has a 12-month-forward-PE-to-Growth (PEG) ratio of 0.95. The market is currently fairly valuing PXD in relation to its projected growth due to the PEG ratio being around the fair market value of 1. PXD's PEG comes from its forward price to earnings ratio being divided by its growth rate. Because PEG ratios include more fundamentals of a company's overall health with additional focus on the future, they are one of the most used valuation metrics by analysts.

Summary

PXD's valuation metrics are adequate at its current price due to a fairly valued PEG ratio due to strong growth. PXD's PE and PEG are around the market average resulting in a average valuation score. Click Here to get the full Report on Pioneer Natural Resources Co (PXD) stock.

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