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Is Hub Group (HUBG) 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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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 to watch right now is Hub Group (HUBG - Free Report) . HUBG is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 8.38, which compares to its industry's average of 10.64. Over the past 52 weeks, HUBG's Forward P/E has been as high as 21.60 and as low as 7.84, with a median of 16.59.

Another notable valuation metric for HUBG is its P/B ratio of 1.72. The P/B ratio pits a stock's market value against 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 3.18. Within the past 52 weeks, HUBG's P/B has been as high as 2.40 and as low as 1.49, with a median of 1.97.

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. HUBG has a P/S ratio of 0.54. This compares to its industry's average P/S of 0.71.

Finally, we should also recognize that HUBG has a P/CF ratio of 6.42. 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 15.50. Within the past 12 months, HUBG's P/CF has been as high as 12.39 and as low as 5.55, with a median of 9.82.

Matson (MATX - Free Report) may be another strong Transportation - Services stock to add to your shortlist. MATX is a # 2 (Buy) stock with a Value grade of A.

Additionally, Matson has a P/B ratio of 1.55 while its industry's price-to-book ratio sits at 3.18. For MATX, this valuation metric has been as high as 3.21, as low as 1.47, with a median of 2.55 over the past year.

These are just a handful of the figures considered in Hub Group and Matson's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that HUBG and MATX is an impressive value stock right now.


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