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Is Huntsman (HUN) a Great Value Stock 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.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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 holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 7.82. This compares to its industry's average Forward P/E of 11.11. Over the last 12 months, HUN's Forward P/E has been as high as 10.60 and as low as 7.39, with a median of 9.11.

Investors should also note that HUN holds a PEG ratio of 0.63. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. HUN's industry currently sports an average PEG of 0.68. Within the past year, HUN's PEG has been as high as 0.75 and as low as 0.14, with a median of 0.18.

Investors should also recognize that HUN has a P/B ratio of 1.64. 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. HUN's current P/B looks attractive when compared to its industry's average P/B of 2.12. Over the past 12 months, HUN's P/B has been as high as 1.97 and as low as 1.39, with a median of 1.70.

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 0.82. This compares to its industry's average P/S of 0.87.

Finally, investors should note that HUN has a P/CF ratio of 5.17. 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 stock's P/CF looks attractive against its industry's average P/CF of 7.03. HUN's P/CF has been as high as 9.44 and as low as 4.84, with a median of 6.40, all within the past year.

Univar Solutions may be another strong Chemical - Diversified stock to add to your shortlist. UNVR is a # 2 (Buy) stock with a Value grade of A.

Shares of Univar Solutions currently holds a Forward P/E ratio of 8.91, and its PEG ratio is 0.56. In comparison, its industry sports average P/E and PEG ratios of 11.11 and 0.68.

UNVR's price-to-earnings ratio has been as high as 15.66 and as low as 8.83, with a median of 13.51, while its PEG ratio has been as high as 1.21 and as low as 0.56, with a median of 1.02, all within the past year.

Univar Solutions also has a P/B ratio of 1.91 compared to its industry's price-to-book ratio of 2.12. Over the past year, its P/B ratio has been as high as 2.53, as low as 1.80, with a median of 2.07.

Value investors will likely look at more than just these metrics, but the above data helps show that Huntsman and Univar Solutions are likely undervalued currently. And when considering the strength of its earnings outlook, HUN and UNVR sticks out as one of the market's strongest value stocks.


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