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Should Value Investors Buy Hub Group (HUBG) Stock?
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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 stock to keep an eye on is Hub Group (HUBG - Free Report) . HUBG is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 9.75, which compares to its industry's average of 13.53. HUBG's Forward P/E has been as high as 21.60 and as low as 7.84, with a median of 9.83, all within the past year.
Investors should also recognize that HUBG has a P/B ratio of 1.73. The P/B ratio is used to compare a stock's market value with 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 3.45. HUBG's P/B has been as high as 2.34 and as low as 1.49, with a median of 1.79, 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. 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 0.49. This compares to its industry's average P/S of 0.64.
Finally, investors should note that HUBG has a P/CF ratio of 5.20. 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. HUBG's P/CF compares to its industry's average P/CF of 12.21. Over the past 52 weeks, HUBG's P/CF has been as high as 12.12 and as low as 4.55, with a median of 6.27.
Investors could also keep in mind Kuehne & Nagel International (KHNGY - Free Report) , an Transportation - Services stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Additionally, Kuehne & Nagel International has a P/B ratio of 9.26 while its industry's price-to-book ratio sits at 3.45. For KHNGY, this valuation metric has been as high as 12.82, as low as 6.58, with a median of 9.39 over the past year.
These are only a few of the key metrics included in Hub Group and Kuehne & Nagel International strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, HUBG and KHNGY look like an impressive value stock at the moment.
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Should Value Investors Buy Hub Group (HUBG) Stock?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 stock to keep an eye on is Hub Group (HUBG - Free Report) . HUBG is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 9.75, which compares to its industry's average of 13.53. HUBG's Forward P/E has been as high as 21.60 and as low as 7.84, with a median of 9.83, all within the past year.
Investors should also recognize that HUBG has a P/B ratio of 1.73. The P/B ratio is used to compare a stock's market value with 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 3.45. HUBG's P/B has been as high as 2.34 and as low as 1.49, with a median of 1.79, 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. 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 0.49. This compares to its industry's average P/S of 0.64.
Finally, investors should note that HUBG has a P/CF ratio of 5.20. 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. HUBG's P/CF compares to its industry's average P/CF of 12.21. Over the past 52 weeks, HUBG's P/CF has been as high as 12.12 and as low as 4.55, with a median of 6.27.
Investors could also keep in mind Kuehne & Nagel International (KHNGY - Free Report) , an Transportation - Services stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Additionally, Kuehne & Nagel International has a P/B ratio of 9.26 while its industry's price-to-book ratio sits at 3.45. For KHNGY, this valuation metric has been as high as 12.82, as low as 6.58, with a median of 9.39 over the past year.
These are only a few of the key metrics included in Hub Group and Kuehne & Nagel International strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, HUBG and KHNGY look like an impressive value stock at the moment.