Is Hibbett Sports (HIBB) Stock Undervalued Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
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.
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.
One company to watch right now is Hibbett Sports (HIBB). HIBB is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock is trading with P/E ratio of 12.54 right now. For comparison, its industry sports an average P/E of 29.42. Over the past 52 weeks, HIBB's Forward P/E has been as high as 21.02 and as low as 2.93, with a median of 11.93.
Another valuation metric that we should highlight is HIBB's P/B ratio of 2.80. 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 solid versus its industry's average P/B of 5.76. Over the past 12 months, HIBB's P/B has been as high as 3.04 and as low as 0.42, with a median of 1.57.
Finally, our model also underscores that HIBB has a P/CF ratio of 12.55. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 14.79. HIBB's P/CF has been as high as 30.07 and as low as 2.42, with a median of 10.44, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Hibbett Sports is likely undervalued currently. And when considering the strength of its earnings outlook, HIBB sticks out at as one of the market's strongest value stocks.
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Hibbett Sports, Inc. (HIBB) : Free Stock Analysis Report
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