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.
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 use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 HD Supply . HDS is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 12.11. This compares to its industry's average Forward P/E of 14.49. Over the past year, HDS's Forward P/E has been as high as 14.26 and as low as 10.12, with a median of 12.21.
HDS is also sporting a PEG ratio of 0.81. 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. HDS's PEG compares to its industry's average PEG of 0.95. Over the last 12 months, HDS's PEG has been as high as 0.91 and as low as 0.70, with a median of 0.83.
We should also highlight that HDS has a P/B ratio of 5.82. 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 stock's P/B looks solid versus its industry's average P/B of 6.81. Over the past 12 months, HDS's P/B has been as high as 6.34 and as low as 4.09, with a median of 5.12.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. HDS has a P/S ratio of 1.22. This compares to its industry's average P/S of 1.23.
Finally, investors should note that HDS has a P/CF ratio of 15.34. 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. This stock's P/CF looks attractive against its industry's average P/CF of 16.35. Over the past year, HDS's P/CF has been as high as 19.36 and as low as 6.95, with a median of 14.97.
These figures are just a handful of the metrics value investors tend to look at, but they help show that HD Supply is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, HDS feels like a great value stock at the moment.
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Should Value Investors Buy HD Supply (HDS) Stock?
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.
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 use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 HD Supply . HDS is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 12.11. This compares to its industry's average Forward P/E of 14.49. Over the past year, HDS's Forward P/E has been as high as 14.26 and as low as 10.12, with a median of 12.21.
HDS is also sporting a PEG ratio of 0.81. 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. HDS's PEG compares to its industry's average PEG of 0.95. Over the last 12 months, HDS's PEG has been as high as 0.91 and as low as 0.70, with a median of 0.83.
We should also highlight that HDS has a P/B ratio of 5.82. 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 stock's P/B looks solid versus its industry's average P/B of 6.81. Over the past 12 months, HDS's P/B has been as high as 6.34 and as low as 4.09, with a median of 5.12.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. HDS has a P/S ratio of 1.22. This compares to its industry's average P/S of 1.23.
Finally, investors should note that HDS has a P/CF ratio of 15.34. 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. This stock's P/CF looks attractive against its industry's average P/CF of 16.35. Over the past year, HDS's P/CF has been as high as 19.36 and as low as 6.95, with a median of 14.97.
These figures are just a handful of the metrics value investors tend to look at, but they help show that HD Supply is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, HDS feels like a great value stock at the moment.