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Is Helen of Troy (HELE) 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.

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 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 stock to keep an eye on is Helen of Troy (HELE - Free Report) . HELE is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 11.20 right now. For comparison, its industry sports an average P/E of 31.65. HELE's Forward P/E has been as high as 13.98 and as low as 8.89, with a median of 11, all within the past year.

Investors will also notice that HELE has a PEG ratio of 1.40. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. HELE's PEG compares to its industry's average PEG of 2.51. Over the past 52 weeks, HELE's PEG has been as high as 1.75 and as low as 1.11, with a median of 1.38.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. HELE has a P/S ratio of 1.23. This compares to its industry's average P/S of 1.84.

Finally, investors should note that HELE has a P/CF ratio of 13.05. 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. HELE's P/CF compares to its industry's average P/CF of 47.98. HELE's P/CF has been as high as 17.82 and as low as 9.58, with a median of 12.67, all within the past year.

These are just a handful of the figures considered in Helen of Troy'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 HELE is an impressive value stock right now.


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