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Are Investors Undervaluing HF FOODS GROUP (HFFG) Right Now?

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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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 company value investors might notice is HF FOODS GROUP (HFFG - Free Report) . HFFG is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 7.84 right now. For comparison, its industry sports an average P/E of 16.07. Over the last 12 months, HFFG's Forward P/E has been as high as 14.56 and as low as 3.67, with a median of 7.15.

Investors should also recognize that HFFG has a P/B ratio of 0.94. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 2.03. Over the past year, HFFG's P/B has been as high as 1.07 and as low as 0.37, with a median of 0.61.

Finally, we should also recognize that HFFG has a P/CF ratio of 9.31. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 14.20. Over the past year, HFFG's P/CF has been as high as 10.56 and as low as 3.66, with a median of 5.91.

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


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