Value investing is easily one of the most popular ways to find great stocks in any market environment. After all, who wouldn’t want to find stocks that are either flying under the radar and are compelling buys, or offer up tantalizing discounts when compared to fair value?
One way to find these companies is by looking at several key metrics and financial ratios, many of which are crucial in the value stock selection process. Let’s put Hoegh LNG Partners LP stock into this equation and find out if it is a good choice for value-oriented investors right now, or if investors subscribing to this methodology should look elsewhere for top picks:
PE Ratio
A key metric that value investors always look at is the Price to Earnings Ratio, or PE for short. This shows us how much investors are willing to pay for each dollar of earnings in a given stock, and is easily one of the most popular financial ratios in the world. The best use of the PE ratio is to compare the stock’s current PE ratio with: a) where this ratio has been in the past; b) how it compares to the average for the industry/sector; and c) how it compares to the market as a whole.
On this front, Hoegh LNG has a trailing twelve months PE ratio of 16.31, as you can see in the chart below:
This level actually compares pretty favorably with the market at large, as the PE for the S&P 500 stands at about 20.04. If we focus on the long-term PE trend, Hoegh LNG’s current PE level puts it above its midpoint over the past one year six months.
Further, the stock’s PE also compares favorably with the Zacks classified Transportation - Shipping industry’s trailing twelve months PE ratio, which stands at 52.73. At the very least, this indicates that the stock is relatively undervalued right now, compared to its peers.
We should also point out that Hoegh LNG has a forward PE ratio (price relative to this year’s earnings) of just 11.78, so it is fair to say that a slightly more value-oriented path may be ahead for Hoegh LNG stock in the near term too.
PEG Ratio
While earnings are certainly important, it is essential to know how much you are paying for the growth of earnings as well. One can easily do that with the PEG ratio (ratio of the P/E to the expected future earnings growth rate). The PEG ratio gives a more complete picture of the valuation of a stock than the P/E ratio.
Hoegh LNG’s PEG ratio stands at just 0.32, compared with the Zacks Transportation - Shipping industry average of 71.65. This suggests a decent undervalued trading relative to its earnings growth potential right now.
Broad Value Outlook
In aggregate, Hoegh LNG currently has a Zacks Value Style Score of ‘B’, putting it into the top 40% of all stocks we cover from this look. This makes Hoegh LNG a solid choice for value investors.
What About the Stock Overall?
Though Hoegh LNG might be a good choice for value investors, there are plenty of other factors to consider before investing in this name. In particular, it is worth noting that the company has a Growth grade of ‘F’ and a Momentum score of ‘D’. This gives HMLP a Zacks VGM score—or its overarching fundamental grade—of ‘D’. (You can read more about the Zacks Style Scores here >>)
Meanwhile, the company’s recent earnings estimates have been encouraging. The current year estimate has seen two upward revisions and no downward over a period of 30 days. This has had just a small impact on the consensus estimate though as estimates have risen by 1.2% in the past one month. You can see the consensus estimate trend and recent price action for the stock in the chart below:
Hoegh LNG Partners LP Price and Consensus
Hoegh LNG Partners LP Price and Consensus | Hoegh LNG Partners LP Quote
Despite this positive trend, the stock has a Zacks Rank #3 (Hold), which indicates expectations of in-line performance from the company in the near term.
Bottom Line
Hoegh LNG is an inspired choice for value investors, as it is hard to beat its incredible lineup of statistics on this front. Moreover, a strong industry rank (Top 42% out of more than 250 industries) further supports the growth potential of the stock. However, with a Zacks Rank #3, it is hard to get too excited about this company overall. In fact, over the past one year, the Zacks Transportation - Shipping industry has underperformed the broader market, as you can see below:
So, value investors might want to wait for the broader factors to turn around in this name first, but once that happens, this stock could be a compelling pick.
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Is Hoegh LNG a Great Stock for Value Investors?
Value investing is easily one of the most popular ways to find great stocks in any market environment. After all, who wouldn’t want to find stocks that are either flying under the radar and are compelling buys, or offer up tantalizing discounts when compared to fair value?
One way to find these companies is by looking at several key metrics and financial ratios, many of which are crucial in the value stock selection process. Let’s put Hoegh LNG Partners LP stock into this equation and find out if it is a good choice for value-oriented investors right now, or if investors subscribing to this methodology should look elsewhere for top picks:
PE Ratio
A key metric that value investors always look at is the Price to Earnings Ratio, or PE for short. This shows us how much investors are willing to pay for each dollar of earnings in a given stock, and is easily one of the most popular financial ratios in the world. The best use of the PE ratio is to compare the stock’s current PE ratio with: a) where this ratio has been in the past; b) how it compares to the average for the industry/sector; and c) how it compares to the market as a whole.
On this front, Hoegh LNG has a trailing twelve months PE ratio of 16.31, as you can see in the chart below:
This level actually compares pretty favorably with the market at large, as the PE for the S&P 500 stands at about 20.04. If we focus on the long-term PE trend, Hoegh LNG’s current PE level puts it above its midpoint over the past one year six months.
Further, the stock’s PE also compares favorably with the Zacks classified Transportation - Shipping industry’s trailing twelve months PE ratio, which stands at 52.73. At the very least, this indicates that the stock is relatively undervalued right now, compared to its peers.
We should also point out that Hoegh LNG has a forward PE ratio (price relative to this year’s earnings) of just 11.78, so it is fair to say that a slightly more value-oriented path may be ahead for Hoegh LNG stock in the near term too.
PEG Ratio
While earnings are certainly important, it is essential to know how much you are paying for the growth of earnings as well. One can easily do that with the PEG ratio (ratio of the P/E to the expected future earnings growth rate). The PEG ratio gives a more complete picture of the valuation of a stock than the P/E ratio.
Hoegh LNG’s PEG ratio stands at just 0.32, compared with the Zacks Transportation - Shipping industry average of 71.65. This suggests a decent undervalued trading relative to its earnings growth potential right now.
Broad Value Outlook
In aggregate, Hoegh LNG currently has a Zacks Value Style Score of ‘B’, putting it into the top 40% of all stocks we cover from this look. This makes Hoegh LNG a solid choice for value investors.
What About the Stock Overall?
Though Hoegh LNG might be a good choice for value investors, there are plenty of other factors to consider before investing in this name. In particular, it is worth noting that the company has a Growth grade of ‘F’ and a Momentum score of ‘D’. This gives HMLP a Zacks VGM score—or its overarching fundamental grade—of ‘D’. (You can read more about the Zacks Style Scores here >>)
Meanwhile, the company’s recent earnings estimates have been encouraging. The current year estimate has seen two upward revisions and no downward over a period of 30 days. This has had just a small impact on the consensus estimate though as estimates have risen by 1.2% in the past one month. You can see the consensus estimate trend and recent price action for the stock in the chart below:
Hoegh LNG Partners LP Price and Consensus
Hoegh LNG Partners LP Price and Consensus | Hoegh LNG Partners LP Quote
Despite this positive trend, the stock has a Zacks Rank #3 (Hold), which indicates expectations of in-line performance from the company in the near term.
Bottom Line
Hoegh LNG is an inspired choice for value investors, as it is hard to beat its incredible lineup of statistics on this front. Moreover, a strong industry rank (Top 42% out of more than 250 industries) further supports the growth potential of the stock. However, with a Zacks Rank #3, it is hard to get too excited about this company overall. In fact, over the past one year, the Zacks Transportation - Shipping industry has underperformed the broader market, as you can see below:
So, value investors might want to wait for the broader factors to turn around in this name first, but once that happens, this stock could be a compelling pick.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana. Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look. See the pot trades we're targeting>>