U.S. Energy Corp.’s (NASDAQ:USEG) 29% Share Price Surge Not Quite Adding Up
U.S. Energy Corp. (NASDAQ:USEG) shareholders would be excited to see that the share price has had a great month, posting a 29% gain and recovering from prior weakness. Looking back a bit further, it’s encouraging to see the stock is up 35% in the last year.
Following the firm bounce in price, given close to half the companies operating in the United States’ Oil and Gas industry have price-to-sales ratios (or “P/S”) below 1.7x, you may consider U.S. Energy as a stock to potentially avoid with its 2.9x P/S ratio. However, the P/S might be high for a reason and it requires further investigation to determine if it’s justified.
