Is Hanger (HNGR) Stock Undervalued Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
Hanger (HNGR) is a stock many investors are watching right now. HNGR is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 15.85, which compares to its industry's average of 26.64. HNGR's Forward P/E has been as high as 22.08 and as low as 15.66, with a median of 19.35, all within the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. HNGR has a P/S ratio of 0.77. This compares to its industry's average P/S of 1.59.
Finally, investors will want to recognize that HNGR has a P/CF ratio of 13.07. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. HNGR's current P/CF looks attractive when compared to its industry's average P/CF of 22.64. Over the past year, HNGR's P/CF has been as high as 18.44 and as low as 10.06, with a median of 12.81.
These are just a handful of the figures considered in Hanger's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that HNGR is an impressive value stock right now.
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