Back to top

Image: Bigstock

Should Value Investors Buy Haverty Furniture (HVT) Stock?

Read MoreHide Full Article

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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of 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.

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.

Haverty Furniture (HVT - Free Report) is a stock many investors are watching right now. HVT is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock holds a P/E ratio of 17.28, while its industry has an average P/E of 18.25. HVT's Forward P/E has been as high as 30.88 and as low as -253.50, with a median of 16.74, all within the past year.

Another valuation metric that we should highlight is HVT's P/B ratio of 1.97. 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. HVT's current P/B looks attractive when compared to its industry's average P/B of 5.04. HVT's P/B has been as high as 2.10 and as low as 0.74, with a median of 1.43, over the past year.

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. HVT has a P/S ratio of 0.71. This compares to its industry's average P/S of 0.83.

Finally, we should also recognize that HVT has a P/CF ratio of 9.24. 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. HVT's current P/CF looks attractive when compared to its industry's average P/CF of 21.94. Within the past 12 months, HVT's P/CF has been as high as 9.84 and as low as 4.96, with a median of 8.16.

These are only a few of the key metrics included in Haverty Furniture'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, HVT looks like an impressive value stock at the moment.


In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


Haverty Furniture Companies, Inc. (HVT) - free report >>

Published in