Should Value Investors Buy Heidrick & Struggles International (HSII) Stock?
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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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.
One company to watch right now is Heidrick & Struggles International (HSII). HSII is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 9.11. This compares to its industry's average Forward P/E of 14.52. HSII's Forward P/E has been as high as 14.95 and as low as 7.23, with a median of 10.45, all within the past year.
Another valuation metric that we should highlight is HSII's P/B ratio of 1.24. 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 2.24. Within the past 52 weeks, HSII's P/B has been as high as 1.69 and as low as 1.14, with a median of 1.41.
Finally, our model also underscores that HSII has a P/CF ratio of 7.24. 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. This stock's P/CF looks attractive against its industry's average P/CF of 9.60. 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 6.68.
GEE Group (JOB) may be another strong Staffing Firms stock to add to your shortlist. JOB is a # 1 (Strong Buy) stock with a Value grade of A.
GEE Group is trading at a forward earnings multiple of 5.93 at the moment, with a PEG ratio of 0.40. This compares to its industry's average P/E of 14.52 and average PEG ratio of 1.60.
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Heidrick & Struggles International, Inc. (HSII) : Free Stock Analysis Report
GEE Group Inc. (JOB) : Free Stock Analysis Report
