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Is Harte Hanks (HHS) Stock Undervalued Right Now?

·2 min read

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.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

Harte Hanks (HHS) is a stock many investors are watching right now. HHS is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.

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 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 0.43. This compares to its industry's average P/S of 0.84.

Finally, investors will want to recognize that HHS has a P/CF ratio of 3.93. 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. HHS's P/CF compares to its industry's average P/CF of 9.38. Over the past 52 weeks, HHS's P/CF has been as high as 5.44 and as low as 2.38, with a median of 3.23.

Value investors will likely look at more than just these metrics, but the above data helps show that Harte Hanks is likely undervalued currently. And when considering the strength of its earnings outlook, HHS sticks out at as one of the market's strongest value stocks.

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