Published on 18 Apr 2023 on Simply Wall St. via Yahoo Finance

NexTier Oilfield Solutions Inc. (NYSE:NEX) Might Not Be As Mispriced As It Looks

NexTier Oilfield Solutions Inc.'s (NYSE:NEX) price-to-earnings (or "P/E") ratio of 6.2x might make it look like a strong buy right now compared to the market in the United States, where around half of the companies have P/E ratios above 15x and even P/E's above 30x are quite common. Although, it's not wise to just take the P/E at face value as there may be an explanation why it's so limited.

NexTier Oilfield Solutions could be doing better as it's been growing earnings less than most other companies lately. The P/E is probably low because investors think this lacklustre earnings performance isn't going to get any better. If this is the case, then existing shareholders will probably struggle to get excited about the future direction of the share price.

Check out our latest analysis for NexTier Oilfield Solutions