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Are Investors Undervaluing Huntsman (HUN) Right Now?

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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.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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 value investors might notice is Huntsman (HUN - Free Report) . HUN is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 9.64. This compares to its industry's average Forward P/E of 12.81. Over the last 12 months, HUN's Forward P/E has been as high as 16.34 and as low as 8.83, with a median of 11.70.

We also note that HUN holds a PEG ratio of 1.13. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. HUN's industry currently sports an average PEG of 1.16. Within the past year, HUN's PEG has been as high as 2.33 and as low as 1.07, with a median of 1.47.

Finally, we should also recognize that HUN has a P/CF ratio of 7.03. 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. HUN's P/CF compares to its industry's average P/CF of 17.34. HUN's P/CF has been as high as 9.45 and as low as 6.12, with a median of 7.74, all within the past year.

These are only a few of the key metrics included in Huntsman'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, HUN looks like an impressive value stock at the moment.


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