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Are Investors Undervaluing Harte Hanks (HHS) 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.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One company value investors might notice is Harte Hanks (HHS - Free Report) . HHS is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 6.17 right now. For comparison, its industry sports an average P/E of 8.78. Over the last 12 months, HHS's Forward P/E has been as high as 14.16 and as low as -33.01, with a median of 7.45.

Finally, we should also recognize that HHS has a P/CF ratio of 2.93. 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 11.17. Over the past year, HHS's P/CF has been as high as 5.50 and as low as -7.98, with a median of 3.26.

Value investors will likely look at more than just these metrics, but the above data helps show that Harte Hanks is likely undervalued currently. And when considering the strength of its earnings outlook, HHS sticks out at as one of the market's strongest value stocks.


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