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Is Huntsman (HUN) Stock Undervalued 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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

Huntsman (HUN - Free Report) is a stock many investors are watching right now. HUN is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 7.57, which compares to its industry's average of 10.58. Over the past 52 weeks, HUN's Forward P/E has been as high as 10.57 and as low as 7.39, with a median of 8.83.

We also note that HUN holds a PEG ratio of 0.61. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. HUN's PEG compares to its industry's average PEG of 0.65. Over the past 52 weeks, HUN's PEG has been as high as 0.75 and as low as 0.14, with a median of 0.18.

Another valuation metric that we should highlight is HUN's 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. This stock's P/B looks solid versus its industry's average P/B of 2.20. HUN's P/B has been as high as 1.97 and as low as 1.39, with a median of 1.69, over the past year.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. HUN has a P/S ratio of 0.78. This compares to its industry's average P/S of 0.83.

Finally, investors will want to recognize that HUN has a P/CF ratio of 5.17. 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. HUN's P/CF compares to its industry's average P/CF of 6.93. Over the past year, HUN's P/CF has been as high as 8.94 and as low as 4.84, with a median of 6.36.

Investors could also keep in mind Univar Solutions , an Chemical - Diversified stock with a Zacks Rank of # 2 (Buy) and Value grade of A.

Shares of Univar Solutions currently holds a Forward P/E ratio of 9.95, and its PEG ratio is 0.63. In comparison, its industry sports average P/E and PEG ratios of 10.58 and 0.65.

Over the last 12 months, UNVR's P/E has been as high as 15.66, as low as 8.83, with a median of 13.26, and its PEG ratio has been as high as 1.21, as low as 0.56, with a median of 1.

Additionally, Univar Solutions has a P/B ratio of 2.12 while its industry's price-to-book ratio sits at 2.20. For UNVR, this valuation metric has been as high as 2.53, as low as 1.80, with a median of 2.06 over the past year.

These are only a few of the key metrics included in Huntsman and Univar Solutions strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, HUN and UNVR look like an impressive value stock at the moment.


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