Back to top

Image: Bigstock

Are Investors Undervaluing Hub Group (HUBG) Right Now?

Read MoreHide Full Article

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.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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 Hub Group (HUBG - Free Report) . HUBG is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 16.53, which compares to its industry's average of 21.62. Over the past 52 weeks, HUBG's Forward P/E has been as high as 31.41 and as low as 16.18, with a median of 19.59.

Another valuation metric that we should highlight is HUBG's P/B ratio of 2.08. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 4.55. Over the past year, HUBG's P/B has been as high as 2.49 and as low as 1.72, with a median of 2.14.

Finally, our model also underscores that HUBG has a P/CF ratio of 7.21. 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. HUBG's P/CF compares to its industry's average P/CF of 19.83. Over the past year, HUBG's P/CF has been as high as 14.89 and as low as 6.30, with a median of 7.89.

Value investors will likely look at more than just these metrics, but the above data helps show that Hub Group is likely undervalued currently. And when considering the strength of its earnings outlook, HUBG sticks out at as one of the market's strongest value stocks.


See More Zacks Research for These Tickers


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


Hub Group, Inc. (HUBG) - free report >>