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Should Value Investors Buy Heidrick & Struggles (HSII) Stock?

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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

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.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One company value investors might notice is Heidrick & Struggles (HSII - Free Report) . HSII is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock holds a P/E ratio of 15.19, while its industry has an average P/E of 15.40. Over the past year, HSII's Forward P/E has been as high as 23.92 and as low as 12.32, with a median of 16.01.

Investors will also notice that HSII has 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. HSII's PEG compares to its industry's average PEG of 1.63. Over the past 52 weeks, HSII's PEG has been as high as 1.77 and as low as 0.91, with a median of 1.18.

We should also highlight that HSII has a P/B ratio of 2.83. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 3.04. Over the past 12 months, HSII's P/B has been as high as 3.55 and as low as 2.13, with a median of 2.80.

Finally, investors will want to recognize that HSII has a P/CF ratio of 12.51. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. HSII's current P/CF looks attractive when compared to its industry's average P/CF of 12.83. Over the past year, HSII's P/CF has been as high as 200.30 and as low as -30.30, with a median of 13.58.

These are only a few of the key metrics included in Heidrick & Struggles'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, HSII looks like an impressive value stock at the moment.


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