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Is Hub Group (HUBG) Stock Undervalued 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.

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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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.

Hub Group (HUBG - Free Report) is a stock many investors are watching right now. HUBG is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 11.75, which compares to its industry's average of 16.89. HUBG's Forward P/E has been as high as 20.84 and as low as 10.96, with a median of 14.04, all within the past year.

Investors should also recognize that HUBG has a P/B ratio of 1.39. The P/B is a method of comparing a stock's market value to 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 3.62. Within the past 52 weeks, HUBG's P/B has been as high as 2.36 and as low as 1.26, with a median of 1.60.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. HUBG has a P/S ratio of 0.35. This compares to its industry's average P/S of 0.67.

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.


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