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 use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 Hallmark Financial (HALL). HALL is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock has a Forward P/E ratio of 9.36. This compares to its industry's average Forward P/E of 25.57. Over the last 12 months, HALL's Forward P/E has been as high as 13.38 and as low as 8.70, with a median of 11.15.
Investors should also recognize that HALL has a P/B ratio of 0.79. 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 company's current P/B looks solid when compared to its industry's average P/B of 1.52. Over the past year, HALL's P/B has been as high as 0.81 and as low as 0.68, with a median of 0.74.
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 prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. HALL has a P/S ratio of 0.52. This compares to its industry's average P/S of 1.2.
Finally, we should also recognize that HALL has a P/CF ratio of 13.07. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 34.02. Over the past year, HALL's P/CF has been as high as 21.29 and as low as -134.13, with a median of 11.96.
These are just a handful of the figures considered in Hallmark Financial'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 HALL is an impressive value stock right now.
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Hallmark Financial Services, Inc. (HALL) : Free Stock Analysis Report
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