Should Value Investors Buy Heidrick & Struggles International (HSII) Stock?
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.
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 use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One stock to keep an eye on is Heidrick & Struggles International (HSII). HSII is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 7.84, which compares to its industry's average of 13.15. Over the past year, HSII's Forward P/E has been as high as 14.95 and as low as 7.23, with a median of 10.39.
Another notable valuation metric for HSII is its P/B ratio of 1.08. 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 solid versus its industry's average P/B of 2.10. Over the past year, HSII's P/B has been as high as 1.69 and as low as 1.07, with a median of 1.32.
Finally, investors should note that HSII has a P/CF ratio of 6.30. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. HSII's current P/CF looks attractive when compared to its industry's average P/CF of 8.73. Over the past 52 weeks, HSII's P/CF has been as high as 8.02 and as low as 5.56, with a median of 6.78.
GEE Group (JOB) may be another strong Staffing Firms stock to add to your shortlist. JOB is a # 2 (Buy) stock with a Value grade of A.
Shares of GEE Group currently holds a Forward P/E ratio of 5.32, and its PEG ratio is 0.35. In comparison, its industry sports average P/E and PEG ratios of 13.15 and 1.44.
JOB's Forward P/E has been as high as 8.57 and as low as 4.58, with a median of 6. During the same time period, its PEG ratio has been as high as 0.57, as low as 0.31, with a median of 0.40.
Furthermore, GEE Group holds a P/B ratio of 0.55 and its industry's price-to-book ratio is 2.10. JOB's P/B has been as high as 0.90, as low as 0.41, with a median of 0.56 over the past 12 months.
These are only a few of the key metrics included in Heidrick & Struggles International and GEE Group strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, HSII and JOB look like an impressive value stock at the moment.
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
