Back to top

Image: Bigstock

Should Value Investors Buy Huntsman (HUN) Stock?

Read MoreHide Full Article

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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One stock to keep an eye on is Huntsman (HUN - Free Report) . HUN is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 10. This compares to its industry's average Forward P/E of 11.83. Over the last 12 months, HUN's Forward P/E has been as high as 13.34 and as low as 7.64, with a median of 9.42.

Another valuation metric that we should highlight is HUN's P/B ratio of 1.94. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. HUN's current P/B looks attractive when compared to its industry's average P/B of 2.36. Within the past 52 weeks, HUN's P/B has been as high as 1.97 and as low as 1.39, with a median of 1.71.

Finally, our model also underscores that HUN has a P/CF ratio of 6.64. 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 7.53. HUN's P/CF has been as high as 10.04 and as low as 4.50, with a median of 6.49, all within the past year.

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


See More Zacks Research for These Tickers


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


Huntsman Corporation (HUN) - free report >>

Published in