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Is HF FOODS GROUP (HFFG) Stock Undervalued 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.

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 company value investors might notice is HF FOODS GROUP (HFFG - Free Report) . HFFG 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 6.78, which compares to its industry's average of 15.84. HFFG's Forward P/E has been as high as 14.56 and as low as 3.67, with a median of 7.11, all within the past year.

Another notable valuation metric for HFFG is its P/B ratio of 0.84. The P/B ratio is used to compare a stock's market value with 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 1.96. HFFG's P/B has been as high as 1.07 and as low as 0.37, with a median of 0.61, over the past year.

Finally, our model also underscores that HFFG has a P/CF ratio of 8.32. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 13.78. 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 6.03.

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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