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Is Hoegh LNG Partners (HMLP) Stock Undervalued Right Now?
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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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.
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 company to watch right now is Hoegh LNG Partners . HMLP is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 3.67 right now. For comparison, its industry sports an average P/E of 4.25. Over the last 12 months, HMLP's Forward P/E has been as high as 11.07 and as low as 2.71, with a median of 3.35.
Investors should also note that HMLP holds a PEG ratio of 0.47. 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. HMLP's industry has an average PEG of 0.49 right now. Over the last 12 months, HMLP's PEG has been as high as 1.74 and as low as 0.43, with a median of 0.54.
Investors should also recognize that HMLP has a P/B ratio of 0.58. 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. This stock's P/B looks attractive against its industry's average P/B of 1.20. Over the past 12 months, HMLP's P/B has been as high as 1.86 and as low as 0.39, with a median of 0.48.
Finally, investors should note that HMLP has a P/CF ratio of 2.49. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. HMLP's P/CF compares to its industry's average P/CF of 4.05. Over the past year, HMLP's P/CF has been as high as 6.16 and as low as 1.46, with a median of 1.85.
Nippon Yusen Kabushiki Kaisha (NPNYY - Free Report) may be another strong Transportation - Shipping stock to add to your shortlist. NPNYY is a # 1 (Strong Buy) stock with a Value grade of A.
Nippon Yusen Kabushiki Kaisha also has a P/B ratio of 1.08 compared to its industry's price-to-book ratio of 1.20. Over the past year, its P/B ratio has been as high as 2.30, as low as 1, with a median of 1.22.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Hoegh LNG Partners and Nippon Yusen Kabushiki Kaisha are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, HMLP and NPNYY feels like a great value stock at the moment.
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Is Hoegh LNG Partners (HMLP) Stock Undervalued Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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.
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 company to watch right now is Hoegh LNG Partners . HMLP is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 3.67 right now. For comparison, its industry sports an average P/E of 4.25. Over the last 12 months, HMLP's Forward P/E has been as high as 11.07 and as low as 2.71, with a median of 3.35.
Investors should also note that HMLP holds a PEG ratio of 0.47. 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. HMLP's industry has an average PEG of 0.49 right now. Over the last 12 months, HMLP's PEG has been as high as 1.74 and as low as 0.43, with a median of 0.54.
Investors should also recognize that HMLP has a P/B ratio of 0.58. 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. This stock's P/B looks attractive against its industry's average P/B of 1.20. Over the past 12 months, HMLP's P/B has been as high as 1.86 and as low as 0.39, with a median of 0.48.
Finally, investors should note that HMLP has a P/CF ratio of 2.49. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. HMLP's P/CF compares to its industry's average P/CF of 4.05. Over the past year, HMLP's P/CF has been as high as 6.16 and as low as 1.46, with a median of 1.85.
Nippon Yusen Kabushiki Kaisha (NPNYY - Free Report) may be another strong Transportation - Shipping stock to add to your shortlist. NPNYY is a # 1 (Strong Buy) stock with a Value grade of A.
Nippon Yusen Kabushiki Kaisha also has a P/B ratio of 1.08 compared to its industry's price-to-book ratio of 1.20. Over the past year, its P/B ratio has been as high as 2.30, as low as 1, with a median of 1.22.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Hoegh LNG Partners and Nippon Yusen Kabushiki Kaisha are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, HMLP and NPNYY feels like a great value stock at the moment.