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Should Value Investors Buy Hibbett Sports (HIBB) Stock?
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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 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 stock to keep an eye on is Hibbett Sports (HIBB - Free Report) . HIBB is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock holds a P/E ratio of 16.46, while its industry has an average P/E of 20.03. Over the past year, HIBB's Forward P/E has been as high as 21.02 and as low as 8.51, with a median of 13.62.
We also note that HIBB holds a PEG ratio of 0.96. 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. HIBB's PEG compares to its industry's average PEG of 1.21. Over the past 52 weeks, HIBB's PEG has been as high as 2.91 and as low as 0.57, with a median of 0.84.
Another valuation metric that we should highlight is HIBB's P/B ratio of 3.13. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 5.75. Over the past year, HIBB's P/B has been as high as 3.38 and as low as 1.01, with a median of 2.08.
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. HIBB has a P/S ratio of 0.86. This compares to its industry's average P/S of 0.88.
Finally, investors will want to recognize that HIBB has a P/CF ratio of 7.05. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 23.84. Within the past 12 months, HIBB's P/CF has been as high as 30.07 and as low as 6.23, with a median of 10.57.
Value investors will likely look at more than just these metrics, but the above data helps show that Hibbett Sports is likely undervalued currently. And when considering the strength of its earnings outlook, HIBB sticks out at as one of the market's strongest value stocks.
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Should Value Investors Buy Hibbett Sports (HIBB) Stock?
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 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 stock to keep an eye on is Hibbett Sports (HIBB - Free Report) . HIBB is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock holds a P/E ratio of 16.46, while its industry has an average P/E of 20.03. Over the past year, HIBB's Forward P/E has been as high as 21.02 and as low as 8.51, with a median of 13.62.
We also note that HIBB holds a PEG ratio of 0.96. 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. HIBB's PEG compares to its industry's average PEG of 1.21. Over the past 52 weeks, HIBB's PEG has been as high as 2.91 and as low as 0.57, with a median of 0.84.
Another valuation metric that we should highlight is HIBB's P/B ratio of 3.13. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 5.75. Over the past year, HIBB's P/B has been as high as 3.38 and as low as 1.01, with a median of 2.08.
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. HIBB has a P/S ratio of 0.86. This compares to its industry's average P/S of 0.88.
Finally, investors will want to recognize that HIBB has a P/CF ratio of 7.05. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 23.84. Within the past 12 months, HIBB's P/CF has been as high as 30.07 and as low as 6.23, with a median of 10.57.
Value investors will likely look at more than just these metrics, but the above data helps show that Hibbett Sports is likely undervalued currently. And when considering the strength of its earnings outlook, HIBB sticks out at as one of the market's strongest value stocks.