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Are Investors Undervaluing HITACHI CONSTR (HTCMY) 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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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.
HITACHI CONSTR (HTCMY - Free Report) is a stock many investors are watching right now. HTCMY is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock holds a P/E ratio of 10.14, while its industry has an average P/E of 16.31. Over the past year, HTCMY's Forward P/E has been as high as 10.70 and as low as 6.06, with a median of 8.41.
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. HTCMY has a P/S ratio of 0.66. This compares to its industry's average P/S of 0.7.
Finally, our model also underscores that HTCMY has a P/CF ratio of 5.90. 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. HTCMY's P/CF compares to its industry's average P/CF of 10.51. HTCMY's P/CF has been as high as 6.09 and as low as 4.15, with a median of 4.95, all within the past year.
These are only a few of the key metrics included in HITACHI CONSTR'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, HTCMY looks like an impressive value stock at the moment.
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Are Investors Undervaluing HITACHI CONSTR (HTCMY) Right Now?
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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.
HITACHI CONSTR (HTCMY - Free Report) is a stock many investors are watching right now. HTCMY is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock holds a P/E ratio of 10.14, while its industry has an average P/E of 16.31. Over the past year, HTCMY's Forward P/E has been as high as 10.70 and as low as 6.06, with a median of 8.41.
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. HTCMY has a P/S ratio of 0.66. This compares to its industry's average P/S of 0.7.
Finally, our model also underscores that HTCMY has a P/CF ratio of 5.90. 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. HTCMY's P/CF compares to its industry's average P/CF of 10.51. HTCMY's P/CF has been as high as 6.09 and as low as 4.15, with a median of 4.95, all within the past year.
These are only a few of the key metrics included in HITACHI CONSTR'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, HTCMY looks like an impressive value stock at the moment.