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Are Investors Undervaluing Huntsman (HUN) Right Now?

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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.

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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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.

One company value investors might notice is Huntsman (HUN - Free Report) . HUN is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 8.76, which compares to its industry's average of 12.63. Over the past 52 weeks, HUN's Forward P/E has been as high as 22.51 and as low as 8.53, with a median of 14.01.

Another notable valuation metric for HUN is its P/B ratio of 1.53. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 2.62. Over the past year, HUN's P/B has been as high as 1.88 and as low as 1.23, with a median of 1.63.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. HUN has a P/S ratio of 0.93. This compares to its industry's average P/S of 1.11.

Finally, investors will want to recognize that HUN has a P/CF ratio of 8.18. 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. HUN's P/CF compares to its industry's average P/CF of 10.75. HUN's P/CF has been as high as 10.04 and as low as 3.39, with a median of 4.62, all within the past year.

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


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