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Drilling into the Technicals & Valuation For Parker Drilling Company (NYSE:PKD)

Parker Drilling Company (NYSE:PKD) has a Price to Book ratio of 0.065053. This ratio has been calculated by dividing the current share price by the book value per share. Investors may use Price to Book to display how the market portrays the value of a stock. Checking in on some other ratios, the company has a Price to Cash Flow ratio of , and a current Price to Earnings ratio of -0.071447. The P/E ratio is one of the most common ratios used for figuring out whether a company is overvalued or undervalued.

Many new investors may be frantically researching the best way to study the stock market. It is hard to say with any certainty which approach will work out the best. Traders may tend to gravitate towards studying the technical, while longer-term investors may be more likely to use fundamental analysis. Of course, many individuals will opt to use a combination of both. Determining the individual risk tolerance and time horizon can play a big part in deciding which way to tackle the market. Short-term trading can be highly risky and may not be suitable for certain individuals. Long-term investing may be the favored way to get into the stock market, but this may vary from person to person. Investment strategies can range from super simple to ultra complex. The one thing that most stock market followers would agree on is that there is rarely any substitution for hard work, dedication, and putting in the required hours of study.

Checking in on some valuation rankings, Parker Drilling Company (NYSE:PKD) has a Value Composite score of 29. Developed by James O’Shaughnessy, the VC score uses five valuation ratios. These ratios are price to earnings, price to cash flow, EBITDA to EV, price to book value, and price to sales. The VC is displayed as a number between 1 and 100. In general, a company with a score closer to 0 would be seen as undervalued, and a score closer to 100 would indicate an overvalued company. Adding a sixth ratio, shareholder yield, we can view the Value Composite 2 score which is currently sitting at 37.

Parker Drilling Company (NYSE:PKD) has a current MF Rank of 13940. Developed by hedge fund manager Joel Greenblatt, the intention of the formula is to spot high quality companies that are trading at an attractive price. The formula uses ROIC and earnings yield ratios to find quality, undervalued stocks. In general, companies with the lowest combined rank may be the higher quality picks.

Further, we can see that Parker Drilling Company (NYSE:PKD) has a Shareholder Yield of -0.010958 and a Shareholder Yield (Mebane Faber) of -0.17024. The first value is calculated by adding the dividend yield to the percentage of repurchased shares. The second value adds in the net debt repaid yield to the calculation. Shareholder yield has the ability to show how much money the firm is giving back to shareholders via a few different avenues. Companies may issue new shares and buy back their own shares. This may occur at the same time. Investors may also use shareholder yield to gauge a baseline rate of return.

The Piotroski F-Score is a scoring system between 1-9 that determines a firm’s financial strength.  The score helps determine if a company’s stock is valuable or not.  The Piotroski F-Score of Parker Drilling Company (NYSE:PKD) is 3.  A score of nine indicates a high value stock, while a score of one indicates a low value stock.  The score is calculated by the return on assets (ROA), Cash flow return on assets (CFROA), change in return of assets, and quality of earnings.  It is also calculated by a change in gearing or leverage, liquidity, and change in shares in issue.  The score is also determined by change in gross margin and change in asset turnover.

Investors may be interested in viewing the Gross Margin score on shares of Parker Drilling Company (NYSE:PKD). The name currently has a score of 45.00000. This score is derived from the Gross Margin (Marx) stability and growth over the previous eight years. The Gross Margin score lands on a scale from 1 to 100 where a score of 1 would be considered positive, and a score of 100 would be seen as negative.

Investors are always looking for any little advantage when trading the stock market. Scouring all the various data regarding publically traded companies can be overwhelming at times. Once the investor becomes familiar with the basics, they may be able to dive in deeper and focus on the essentials. Creating a winning strategy may not occur overnight. There may be times when even the best crafted plan does not play out as expected. Being flexible and having the proper tools in place can help the investor see the clearer picture when markets get muddy.  

Volatility/PI
Stock volatility is a percentage that indicates whether a stock is a desirable purchase.  Investors look at the Volatility 12m to determine if a company has a low volatility percentage or not over the course of a year.  The Volatility 12m of Parker Drilling Company (NYSE:PKD) is 86.440900.  This is calculated by taking weekly log normal returns and standard deviation of the share price over one year annualized.  The lower the number, a company is thought to have low volatility.  The Volatility 3m is a similar percentage determined by the daily log normal returns and standard deviation of the share price over 3 months.  The Volatility 3m of Parker Drilling Company (NYSE:PKD) is 87.367400.  The Volatility 6m is the same, except measured over the course of six months.  The Volatility 6m is 93.673000.

The Price Index is a ratio that indicates the return of a share price over a past period. The price index of Parker Drilling Company (NYSE:PKD) for last month was 0.54128. This is calculated by taking the current share price and dividing by the share price one month ago. If the ratio is greater than 1, then that means there has been an increase in price over the month. If the ratio is less than 1, then we can determine that there has been a decrease in price. Similarly, investors look up the share price over 12 month periods. The Price Index 12m for Parker Drilling Company (NYSE:PKD) is 0.08550.

There are many different tools to determine whether a company is profitable or not.  One of the most popular ratios is the “Return on Assets” (aka ROA).  This score indicates how profitable a company is relative to its total assets.  The Return on Assets for Parker Drilling Company (NYSE:PKD) is -0.142616.  

This number is calculated by dividing net income after tax by the company’s total assets.  A company that manages their assets well will have a higher return, while a company that manages their assets poorly will have a lower return.

When the stock market starts to get volatile, investors might start getting worried about their investments. The natural response is to do something about it and take some action. Sometimes this may be necessary, but sometimes the best way to deal with volatility may be to wait it out and stay the course. It can be scary to watch the portfolio decline, and nobody wants to see their stocks taking a nosedive. Although there is no foolproof strategy to ride out market downturns, investors often agree that having a diversified stock portfolio may be the most logical defense.