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Should Value Investors Buy Hibbett Sports (HIBB) Stock?

Zacks Equity Research
Does NMI Holdings (NMIH) have what it takes to be a top stock pick for momentum investors? Let's find out.

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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of 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.

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.

Hibbett Sports (HIBB) is a stock many investors are watching right now. HIBB is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 10.84, which compares to its industry's average of 14.38. Over the last 12 months, HIBB's Forward P/E has been as high as 15.06 and as low as 7.76, with a median of 11.06.

Finally, we should also recognize that HIBB has a P/CF ratio of 6.13. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. HIBB's current P/CF looks attractive when compared to its industry's average P/CF of 20.53. HIBB's P/CF has been as high as 9.22 and as low as 4.40, with a median of 6.18, all within the past year.

These are only a few of the key metrics included in Hibbett Sports's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, HIBB looks like an impressive value stock at the moment.


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