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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore 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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 to watch right now is HP (HPQ - Free Report) . HPQ is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.
We also note that HPQ holds a PEG ratio of 1.67. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. HPQ's industry currently sports an average PEG of 3.09. Over the past 52 weeks, HPQ's PEG has been as high as 5.84 and as low as 1.57, with a median of 3.85.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. HPQ has a P/S ratio of 0.55. This compares to its industry's average P/S of 1.47.
Finally, our model also underscores that HPQ has a P/CF ratio of 9.18. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 19.18. HPQ's P/CF has been as high as 9.18 and as low as 5.04, with a median of 7.69, all within the past year.
These are only a few of the key metrics included in HP'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, HPQ looks like an impressive value stock at the moment.
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Is HP (HPQ) Stock Undervalued Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore 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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 to watch right now is HP (HPQ - Free Report) . HPQ is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.
We also note that HPQ holds a PEG ratio of 1.67. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. HPQ's industry currently sports an average PEG of 3.09. Over the past 52 weeks, HPQ's PEG has been as high as 5.84 and as low as 1.57, with a median of 3.85.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. HPQ has a P/S ratio of 0.55. This compares to its industry's average P/S of 1.47.
Finally, our model also underscores that HPQ has a P/CF ratio of 9.18. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 19.18. HPQ's P/CF has been as high as 9.18 and as low as 5.04, with a median of 7.69, all within the past year.
These are only a few of the key metrics included in HP'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, HPQ looks like an impressive value stock at the moment.