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Should Value Investors Buy Hannover Ruck (HVRRY) Stock?

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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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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 stock to keep an eye on is Hannover Ruck (HVRRY - Free Report) . HVRRY is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 11.79, which compares to its industry's average of 20.91. Over the past 52 weeks, HVRRY's Forward P/E has been as high as 14.05 and as low as 11.15, with a median of 12.61.

Another valuation metric that we should highlight is HVRRY's P/B ratio of 2.59. 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 attractive against its industry's average P/B of 4.36. HVRRY's P/B has been as high as 2.92 and as low as 2.19, with a median of 2.61, over the past year.

Finally, we should also recognize that HVRRY has a P/CF ratio of 12.99. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. HVRRY's P/CF compares to its industry's average P/CF of 21.12. Over the past 52 weeks, HVRRY's P/CF has been as high as 16.47 and as low as 11.94, with a median of 13.87.

These are just a handful of the figures considered in Hannover Ruck'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 HVRRY is an impressive value stock right now.


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