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Are Investors Undervaluing Hilton Grand Vacations (HGV) Right Now?
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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 Hilton Grand Vacations (HGV - Free Report) . HGV is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 10.71, which compares to its industry's average of 23.48. Over the past 52 weeks, HGV's Forward P/E has been as high as 12.63 and as low as 7.81, with a median of 10.32.
HGV is also sporting a PEG ratio of 1.24. 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. HGV's industry has an average PEG of 1.88 right now. Over the last 12 months, HGV's PEG has been as high as 1.48 and as low as 0.42, with a median of 0.59.
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. HGV has a P/S ratio of 1.15. This compares to its industry's average P/S of 1.74.
Finally, investors should note that HGV has a P/CF ratio of 7.86. 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. This stock's P/CF looks attractive against its industry's average P/CF of 19.11. Over the past 52 weeks, HGV's P/CF has been as high as 8.99 and as low as 6.37, with a median of 7.75.
Value investors will likely look at more than just these metrics, but the above data helps show that Hilton Grand Vacations is likely undervalued currently. And when considering the strength of its earnings outlook, HGV sticks out at as one of the market's strongest value stocks.
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Are Investors Undervaluing Hilton Grand Vacations (HGV) Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 Hilton Grand Vacations (HGV - Free Report) . HGV is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 10.71, which compares to its industry's average of 23.48. Over the past 52 weeks, HGV's Forward P/E has been as high as 12.63 and as low as 7.81, with a median of 10.32.
HGV is also sporting a PEG ratio of 1.24. 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. HGV's industry has an average PEG of 1.88 right now. Over the last 12 months, HGV's PEG has been as high as 1.48 and as low as 0.42, with a median of 0.59.
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. HGV has a P/S ratio of 1.15. This compares to its industry's average P/S of 1.74.
Finally, investors should note that HGV has a P/CF ratio of 7.86. 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. This stock's P/CF looks attractive against its industry's average P/CF of 19.11. Over the past 52 weeks, HGV's P/CF has been as high as 8.99 and as low as 6.37, with a median of 7.75.
Value investors will likely look at more than just these metrics, but the above data helps show that Hilton Grand Vacations is likely undervalued currently. And when considering the strength of its earnings outlook, HGV sticks out at as one of the market's strongest value stocks.