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Should Value Investors Buy Harte Hanks (HHS) Stock?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One stock to keep an eye on is Harte Hanks (HHS - Free Report) . HHS is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 7.54 right now. For comparison, its industry sports an average P/E of 9.44. Over the past 52 weeks, HHS's Forward P/E has been as high as 40.77 and as low as 4.24, with a median of 8.62.

Investors should also note that HHS holds a PEG ratio of 0.63. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. HHS's industry has an average PEG of 1.30 right now. Over the last 12 months, HHS's PEG has been as high as 3.40 and as low as 0.35, with a median of 0.72.

Another notable valuation metric for HHS is its P/B ratio of 2.73. The P/B ratio pits a stock's market value against 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 5.10. Over the past year, HHS's P/B has been as high as 2.87 and as low as 1.80, with a median of 2.47.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. HHS has a P/S ratio of 0.3. This compares to its industry's average P/S of 0.46.

These are only a few of the key metrics included in Harte Hanks's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, HHS looks like an impressive value stock at the moment.

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