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Should Value Investors Buy Hewlett Packard (HPE) Stock?
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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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader 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.
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 stock to keep an eye on is Hewlett Packard (HPE - Free Report) . HPE 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 8.65. This compares to its industry's average Forward P/E of 15.34. HPE's Forward P/E has been as high as 8.65 and as low as 5.65, with a median of 7.56, all within the past year.
Investors should also note that HPE holds a PEG ratio of 1.83. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. HPE's industry currently sports an average PEG of 2.72. Over the past 52 weeks, HPE's PEG has been as high as 2.25 and as low as 1.33, with a median of 1.74.
Another valuation metric that we should highlight is HPE's P/B ratio of 1.14. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. HPE's current P/B looks attractive when compared to its industry's average P/B of 3.30. Over the past year, HPE's P/B has been as high as 1.14 and as low as 0.75, with a median of 1.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. HPE has a P/S ratio of 0.77. This compares to its industry's average P/S of 1.65.
Finally, our model also underscores that HPE has a P/CF ratio of 5.32. 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. HPE's current P/CF looks attractive when compared to its industry's average P/CF of 13.58. Over the past year, HPE's P/CF has been as high as 5.32 and as low as 2.54, with a median of 4.73.
NCR may be another strong Computer - Integrated Systems stock to add to your shortlist. NCR is a # 2 (Buy) stock with a Value grade of A.
Furthermore, NCR holds a P/B ratio of 2.63 and its industry's price-to-book ratio is 3.30. NCR's P/B has been as high as 3.48, as low as 1.77, with a median of 2.26 over the past 12 months.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Hewlett Packard and NCR are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, HPE and NCR feels like a great value stock at the moment.
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Should Value Investors Buy Hewlett Packard (HPE) 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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader 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.
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 stock to keep an eye on is Hewlett Packard (HPE - Free Report) . HPE 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 8.65. This compares to its industry's average Forward P/E of 15.34. HPE's Forward P/E has been as high as 8.65 and as low as 5.65, with a median of 7.56, all within the past year.
Investors should also note that HPE holds a PEG ratio of 1.83. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. HPE's industry currently sports an average PEG of 2.72. Over the past 52 weeks, HPE's PEG has been as high as 2.25 and as low as 1.33, with a median of 1.74.
Another valuation metric that we should highlight is HPE's P/B ratio of 1.14. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. HPE's current P/B looks attractive when compared to its industry's average P/B of 3.30. Over the past year, HPE's P/B has been as high as 1.14 and as low as 0.75, with a median of 1.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. HPE has a P/S ratio of 0.77. This compares to its industry's average P/S of 1.65.
Finally, our model also underscores that HPE has a P/CF ratio of 5.32. 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. HPE's current P/CF looks attractive when compared to its industry's average P/CF of 13.58. Over the past year, HPE's P/CF has been as high as 5.32 and as low as 2.54, with a median of 4.73.
NCR may be another strong Computer - Integrated Systems stock to add to your shortlist. NCR is a # 2 (Buy) stock with a Value grade of A.
Furthermore, NCR holds a P/B ratio of 2.63 and its industry's price-to-book ratio is 3.30. NCR's P/B has been as high as 3.48, as low as 1.77, with a median of 2.26 over the past 12 months.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Hewlett Packard and NCR are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, HPE and NCR feels like a great value stock at the moment.