Should Value Investors Buy Harte Hanks (HHS) Stock?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore 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.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
Harte Hanks (HHS) is a stock many investors are watching right now. HHS is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock holds a P/E ratio of 6.72, while its industry has an average P/E of 10.98. Over the last 12 months, HHS's Forward P/E has been as high as 11.65 and as low as 4.25, with a median of 6.42.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's 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. HHS has a P/S ratio of 0.42. This compares to its industry's average P/S of 0.68.
Finally, we should also recognize that HHS has a P/CF ratio of 4.53. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 10.22. Over the past year, HHS's P/CF has been as high as 7.98 and as low as 2.38, with a median of 3.99.
These are just a handful of the figures considered in Harte Hanks'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 HHS is an impressive value stock right now.
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Harte Hanks, Inc. (HHS) : Free Stock Analysis Report
