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Should Value Investors Buy Hub Group (HUBG) Stock?
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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.
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.
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.
Hub Group (HUBG - Free Report) is a stock many investors are watching right now. HUBG is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 7.90, while its industry has an average P/E of 10.77. Over the last 12 months, HUBG's Forward P/E has been as high as 21.60 and as low as 7.84, with a median of 13.27.
Another notable valuation metric for HUBG is its P/B ratio of 1.54. 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 solid versus its industry's average P/B of 3.16. 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 1.95.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. 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 0.47. This compares to its industry's average P/S of 0.59.
Finally, we should also recognize that HUBG has a P/CF ratio of 5.08. 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. HUBG's current P/CF looks attractive when compared to its industry's average P/CF of 11.54. HUBG's P/CF has been as high as 12.39 and as low as 5.08, with a median of 8.51, all within the past year.
Another great Transportation - Services stock you could consider is Kuehne & Nagel International (KHNGY - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
Additionally, Kuehne & Nagel International has a P/B ratio of 8.25 while its industry's price-to-book ratio sits at 3.16. For KHNGY, this valuation metric has been as high as 15.38, as low as 6.58, with a median of 9.76 over the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Hub Group and Kuehne & Nagel International are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, HUBG and KHNGY feels like a great value stock at the moment.
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Should Value Investors Buy Hub Group (HUBG) Stock?
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.
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.
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.
Hub Group (HUBG - Free Report) is a stock many investors are watching right now. HUBG is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 7.90, while its industry has an average P/E of 10.77. Over the last 12 months, HUBG's Forward P/E has been as high as 21.60 and as low as 7.84, with a median of 13.27.
Another notable valuation metric for HUBG is its P/B ratio of 1.54. 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 solid versus its industry's average P/B of 3.16. 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 1.95.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. 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 0.47. This compares to its industry's average P/S of 0.59.
Finally, we should also recognize that HUBG has a P/CF ratio of 5.08. 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. HUBG's current P/CF looks attractive when compared to its industry's average P/CF of 11.54. HUBG's P/CF has been as high as 12.39 and as low as 5.08, with a median of 8.51, all within the past year.
Another great Transportation - Services stock you could consider is Kuehne & Nagel International (KHNGY - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
Additionally, Kuehne & Nagel International has a P/B ratio of 8.25 while its industry's price-to-book ratio sits at 3.16. For KHNGY, this valuation metric has been as high as 15.38, as low as 6.58, with a median of 9.76 over the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Hub Group and Kuehne & Nagel International are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, HUBG and KHNGY feels like a great value stock at the moment.