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Should Value Investors Buy Heidrick & Struggles International (HSII) 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 use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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 company to watch right now is Heidrick & Struggles International (HSII - Free Report) . HSII is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 15.88, which compares to its industry's average of 16.33. Over the last 12 months, HSII's Forward P/E has been as high as 16.91 and as low as 9.15, with a median of 13.27.

Investors should also note that HSII holds a PEG ratio of 0.99. 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. HSII's industry currently sports an average PEG of 1.22. HSII's PEG has been as high as 1.06 and as low as 0.57, with a median of 0.84, all within the past year.

We should also highlight that HSII has a P/B ratio of 1.96. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. HSII's current P/B looks attractive when compared to its industry's average P/B of 2.06. Over the past 12 months, HSII's P/B has been as high as 2.03 and as low as 1.20, with a median of 1.54.

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

Shares of Resources Connection are currently trading at a forward earnings multiple of 10.08 and a PEG ratio of 0.67 compared to its industry's P/E and PEG ratios of 16.33 and 1.22, respectively.

Over the past year, RGP's P/E has been as high as 16.94, as low as 7.47, with a median of 10.18; its PEG ratio has been as high as 1.09, as low as 0.50, with a median of 0.84 during the same time period.

Additionally, Resources Connection has a P/B ratio of 0.88 while its industry's price-to-book ratio sits at 2.06. For RGP, this valuation metric has been as high as 1.15, as low as 0.65, with a median of 0.87 over the past year.

These are just a handful of the figures considered in Heidrick & Struggles International and Resources Connection'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 RGP is an impressive value stock right now.


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