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Should Value Investors Buy Warrior Met Coal (HCC) Stock?

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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.

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.

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.

One company to watch right now is Warrior Met Coal (HCC - Free Report) . HCC is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock holds a P/E ratio of 4.98, while its industry has an average P/E of 7.23. Over the last 12 months, HCC's Forward P/E has been as high as 6.72 and as low as 2.67, with a median of 4.81.

Finally, we should also recognize that HCC has a P/CF ratio of 1.99. 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. HCC's current P/CF looks attractive when compared to its industry's average P/CF of 2.40. Over the past year, HCC's P/CF has been as high as 3.04 and as low as 1.49, with a median of 2.25.

These are just a handful of the figures considered in Warrior Met Coal'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 HCC is an impressive value stock right now.


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