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Are Investors Undervaluing Heidrick & Struggles International (HSII) 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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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 Heidrick & Struggles International (HSII - Free Report) . HSII is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 9.15 right now. For comparison, its industry sports an average P/E of 17.62. Over the last 12 months, HSII's Forward P/E has been as high as 14.95 and as low as 7.83, with a median of 9.53.

We also note that HSII holds a PEG ratio of 0.57. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. HSII's PEG compares to its industry's average PEG of 1.57. HSII's PEG has been as high as 0.58 and as low as 0.57, with a median of 0.57, all within the past year.

We should also highlight that HSII has a P/B ratio of 1.33. Investors use the P/B ratio to look at a stock's market value versus 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 2.07. Over the past 12 months, HSII's P/B has been as high as 1.69 and as low as 1.05, with a median of 1.27.

Finally, our model also underscores that HSII has a P/CF ratio of 8.29. 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 stock's P/CF looks attractive against its industry's average P/CF of 13.52. Over the past 52 weeks, HSII's P/CF has been as high as 8.84 and as low as 5.56, with a median of 7.33.

If you're looking for another solid Staffing Firms value stock, take a look at Randstad Holding (RANJY - Free Report) . RANJY is a # 2 (Buy) stock with a Value score of A.

Randstad Holding sports a P/B ratio of 1.95 as well; this compares to its industry's price-to-book ratio of 2.07. In the past 52 weeks, RANJY's P/B has been as high as 2.33, as low as 1.82, with a median of 2.05.

These are just a handful of the figures considered in Heidrick & Struggles International and Randstad Holding'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 HSII and RANJY is an impressive value stock right now.


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