While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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.
One stock to keep an eye on is Hawaiian Holdings (HA). HA is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 7.62 right now. For comparison, its industry sports an average P/E of 9. Over the last 12 months, HA's Forward P/E has been as high as 8.19 and as low as 4.77, with a median of 7.02.
Investors should also recognize that HA has a P/B ratio of 1.29. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 2.55. Over the past 12 months, HA's P/B has been as high as 1.91 and as low as 1.09, with a median of 1.32.
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. HA has a P/S ratio of 0.49. This compares to its industry's average P/S of 0.68.
Finally, investors should note that HA has a P/CF ratio of 3.97. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 5.73. Over the past 52 weeks, HA's P/CF has been as high as 4.36 and as low as 2.71, with a median of 3.54.
These are just a handful of the figures considered in Hawaiian Holdings'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 HA is an impressive value stock right now.
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Hawaiian Holdings, Inc. (HA) : Free Stock Analysis Report
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