Are Investors Undervaluing Hallador Energy (HNRG) Right Now?
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.
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.
Hallador Energy (HNRG) is a stock many investors are watching right now. HNRG is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.
Investors should also recognize that HNRG has a P/B ratio of 0.30. The P/B is a method of comparing a stock's market value to 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 0.89. Within the past 52 weeks, HNRG's P/B has been as high as 0.70 and as low as 0.30, with a median of 0.59.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. HNRG has a P/S ratio of 0.23. This compares to its industry's average P/S of 0.27.
Finally, we should also recognize that HNRG has a P/CF ratio of 1.54. 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 1.91. HNRG's P/CF has been as high as 3.31 and as low as 1.54, with a median of 2.61, all within the past year.
These are only a few of the key metrics included in Hallador Energy's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, HNRG looks like an impressive value stock at the moment.
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