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Is Haverty Furniture (HVT) Stock Undervalued Right Now?

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Zacks Equity Research
·3 min read
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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.

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 use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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.

Haverty Furniture (HVT) is a stock many investors are watching right now. HVT is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock holds a P/E ratio of 16.97, while its industry has an average P/E of 23.06. Over the past year, HVT's Forward P/E has been as high as 30.88 and as low as -253.50, with a median of 19.05.

We should also highlight that HVT has a P/B ratio of 2.62. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 5.04. Within the past 52 weeks, HVT's P/B has been as high as 2.69 and as low as 0.74, with a median of 1.52.

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. HVT has a P/S ratio of 0.89. This compares to its industry's average P/S of 1.27.

Finally, we should also recognize that HVT has a P/CF ratio of 8.75. 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. This stock's P/CF looks attractive against its industry's average P/CF of 21.94. Within the past 12 months, HVT's P/CF has been as high as 9.84 and as low as 4.96, with a median of 8.

These are just a handful of the figures considered in Haverty Furniture'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 HVT is an impressive value stock right now.


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