Should Value Investors Buy Heidrick & Struggles International (HSII) Stock?
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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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.
One company value investors might notice is Heidrick & Struggles International (HSII). HSII is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 10.54. This compares to its industry's average Forward P/E of 11.15. Over the last 12 months, HSII's Forward P/E has been as high as 14.16 and as low as 8, with a median of 10.92.
We should also highlight that HSII has a P/B ratio of 1.54. The P/B ratio is used to compare a stock's market value with 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 2.57. Over the past year, HSII's P/B has been as high as 2.93 and as low as 1.37, with a median of 2.19.
Finally, our model also underscores that HSII has a P/CF ratio of 6.32. 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. HSII's P/CF compares to its industry's average P/CF of 8.14. Within the past 12 months, HSII's P/CF has been as high as 11.10 and as low as 5.63, with a median of 8.53.
If you're looking for another solid Staffing Firms value stock, take a look at GEE Group (JOB). JOB is a # 2 (Buy) stock with a Value score of A.
Shares of GEE Group currently holds a Forward P/E ratio of 7.11, and its PEG ratio is 0.47. In comparison, its industry sports average P/E and PEG ratios of 11.15 and 1.37.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Heidrick & Struggles International, Inc. (HSII) : Free Stock Analysis Report
GEE Group Inc. (JOB) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
