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Should Value Investors Buy The Hackett Group (HCKT) 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.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One stock to keep an eye on is The Hackett Group (HCKT - Free Report) . HCKT is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 14.27, while its industry has an average P/E of 30.08. Over the last 12 months, HCKT's Forward P/E has been as high as 15.32 and as low as 10.80, with a median of 13.63.

HCKT is also sporting a PEG ratio of 1.06. 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. HCKT's industry currently sports an average PEG of 3.10. HCKT's PEG has been as high as 1.13 and as low as 0.80, with a median of 1.01, all within the past year.

Finally, we should also recognize that HCKT has a P/CF ratio of 18.40. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. HCKT's P/CF compares to its industry's average P/CF of 20.21. HCKT's P/CF has been as high as 18.63 and as low as 11.91, with a median of 15.83, all within the past year.

Value investors will likely look at more than just these metrics, but the above data helps show that The Hackett Group is likely undervalued currently. And when considering the strength of its earnings outlook, HCKT sticks out at as one of the market's strongest value stocks.


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