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Is Health Insurance Innovations (HIIQ) Stock Undervalued Right Now?

Zacks Equity Research

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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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.

Health Insurance Innovations (HIIQ) is a stock many investors are watching right now. HIIQ is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 5.04 right now. For comparison, its industry sports an average P/E of 9.28. Over the past year, HIIQ's Forward P/E has been as high as 22.02 and as low as 5.04, with a median of 11.38.

Finally, our model also underscores that HIIQ has a P/CF ratio of 18.45. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. HIIQ's current P/CF looks attractive when compared to its industry's average P/CF of 18.81. HIIQ's P/CF has been as high as 43.57 and as low as 16.24, with a median of 25.07, all within the past year.

These are just a handful of the figures considered in Health Insurance Innovations'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 HIIQ is an impressive value stock right now.

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