Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
Harte Hanks (HHS) is a stock many investors are watching right now. HHS is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock holds a P/E ratio of 6.76, while its industry has an average P/E of 8.08. Over the last 12 months, HHS's Forward P/E has been as high as 11.65 and as low as 4.25, with a median of 8.10.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. HHS has a P/S ratio of 0.39. This compares to its industry's average P/S of 0.89.
Finally, our model also underscores that HHS has a P/CF ratio of 5.23. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 9. Over the past year, HHS's P/CF has been as high as 7.98 and as low as 2.38, with a median of 3.23.
These are just a handful of the figures considered in Harte Hanks'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 HHS is an impressive value stock right now.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Harte Hanks, Inc. (HHS) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research