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Is HITACHI CONSTR (HTCMY) a Great Value Stock Right Now?
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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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 stock to keep an eye on is HITACHI CONSTR (HTCMY - Free Report) . HTCMY is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 9.61. This compares to its industry's average Forward P/E of 15.56. HTCMY's Forward P/E has been as high as 19.26 and as low as 9.61, with a median of 16.89, all within the past year.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. HTCMY has a P/S ratio of 0.57. This compares to its industry's average P/S of 0.85.
Finally, we should also recognize that HTCMY has a P/CF ratio of 5.23. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 10.58. Within the past 12 months, HTCMY's P/CF has been as high as 12.72 and as low as 4.97, with a median of 7.80.
Investors could also keep in mind The Manitowoc Company (MTW - Free Report) , an Manufacturing - Construction and Mining stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
The Manitowoc Company is currently trading with a Forward P/E ratio of 10.26 while its PEG ratio sits at 1.53. Both of the company's metrics compare favorably to its industry's average P/E of 15.56 and average PEG ratio of 1.12.
Over the last 12 months, MTW's P/E has been as high as 48.94, as low as 9.84, with a median of 15.20, and its PEG ratio has been as high as 4.89, as low as 1.40, with a median of 2.63.
Furthermore, The Manitowoc Company holds a P/B ratio of 0.73 and its industry's price-to-book ratio is 5.57. MTW's P/B has been as high as 1.50, as low as 0.69, with a median of 1.12 over the past 12 months.
These figures are just a handful of the metrics value investors tend to look at, but they help show that HITACHI CONSTR and The Manitowoc Company are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, HTCMY and MTW feels like a great value stock at the moment.
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Is HITACHI CONSTR (HTCMY) a Great Value Stock Right Now?
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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 stock to keep an eye on is HITACHI CONSTR (HTCMY - Free Report) . HTCMY is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 9.61. This compares to its industry's average Forward P/E of 15.56. HTCMY's Forward P/E has been as high as 19.26 and as low as 9.61, with a median of 16.89, all within the past year.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. HTCMY has a P/S ratio of 0.57. This compares to its industry's average P/S of 0.85.
Finally, we should also recognize that HTCMY has a P/CF ratio of 5.23. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 10.58. Within the past 12 months, HTCMY's P/CF has been as high as 12.72 and as low as 4.97, with a median of 7.80.
Investors could also keep in mind The Manitowoc Company (MTW - Free Report) , an Manufacturing - Construction and Mining stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
The Manitowoc Company is currently trading with a Forward P/E ratio of 10.26 while its PEG ratio sits at 1.53. Both of the company's metrics compare favorably to its industry's average P/E of 15.56 and average PEG ratio of 1.12.
Over the last 12 months, MTW's P/E has been as high as 48.94, as low as 9.84, with a median of 15.20, and its PEG ratio has been as high as 4.89, as low as 1.40, with a median of 2.63.
Furthermore, The Manitowoc Company holds a P/B ratio of 0.73 and its industry's price-to-book ratio is 5.57. MTW's P/B has been as high as 1.50, as low as 0.69, with a median of 1.12 over the past 12 months.
These figures are just a handful of the metrics value investors tend to look at, but they help show that HITACHI CONSTR and The Manitowoc Company are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, HTCMY and MTW feels like a great value stock at the moment.