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Should Value Investors Buy Hanger (HNGR) 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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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 Hanger (HNGR - Free Report) . HNGR is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 19.30 right now. For comparison, its industry sports an average P/E of 19.35. Over the last 12 months, HNGR's Forward P/E has been as high as 126.02 and as low as 11.01, with a median of 26.01.

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 popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. HNGR has a P/S ratio of 0.72. This compares to its industry's average P/S of 1.21.

Finally, investors will want to recognize that HNGR has a P/CF ratio of 12.54. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. HNGR's P/CF compares to its industry's average P/CF of 26.35. Over the past 52 weeks, HNGR's P/CF has been as high as 16.53 and as low as 6.84, with a median of 12.85.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Hanger is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, HNGR feels like a great value stock at the moment.


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