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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company to watch right now is Hibbett Sports (HIBB). HIBB is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock holds a P/E ratio of 9.22, while its industry has an average P/E of 14.29. Over the past year, HIBB's Forward P/E has been as high as 15.06 and as low as 7.76, with a median of 10.75.
Investors should also note that HIBB holds a PEG ratio of 1.42. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. HIBB's industry currently sports an average PEG of 1.48. Over the last 12 months, HIBB's PEG has been as high as 5.45 and as low as 0.96, with a median of 1.38.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. HIBB has a P/S ratio of 0.33. This compares to its industry's average P/S of 0.37.
Finally, our model also underscores that HIBB has a P/CF ratio of 5.68. 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 20.91. Within the past 12 months, HIBB's P/CF has been as high as 8.84 and as low as 4.40, with a median of 5.99.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Hibbett Sports is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, HIBB feels like a great value stock at the moment.
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Hibbett Sports, Inc. (HIBB) : Free Stock Analysis Report
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