Back to top

Image: Bigstock

Is Huntsman (HUN) Stock Undervalued Right Now?

Read MoreHide Full Article

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One company to watch right now is Huntsman (HUN - Free Report) . HUN is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 8.81 right now. For comparison, its industry sports an average P/E of 12.75. Over the past year, HUN's Forward P/E has been as high as 16.34 and as low as 8.55, with a median of 11.70.

We also note that HUN holds a PEG ratio of 1.04. 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. HUN's PEG compares to its industry's average PEG of 1.14. Over the past 52 weeks, HUN's PEG has been as high as 2.33 and as low as 1.01, with a median of 1.45.

Finally, investors should note that HUN has a P/CF ratio of 5.76. 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 stock's P/CF looks attractive against its industry's average P/CF of 15.43. HUN's P/CF has been as high as 9.44 and as low as 5.25, with a median of 7.73, all within the past year.

These are just a handful of the figures considered in Huntsman's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that HUN is an impressive value stock right now.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Huntsman Corporation (HUN) - free report >>