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Are Investors Undervaluing Hudson Technologies (HDSN) Right Now?

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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

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 stock to keep an eye on is Hudson Technologies (HDSN - Free Report) . HDSN is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 19.39 right now. For comparison, its industry sports an average P/E of 29.55. Over the last 12 months, HDSN's Forward P/E has been as high as 20.77 and as low as 7.72, with a median of 14.23.

Finally, investors should note that HDSN has a P/CF ratio of 18.49. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 54.95. Over the past 52 weeks, HDSN's P/CF has been as high as 18.78 and as low as 6.64, with a median of 9.81.

Kion Group (KIGRY - Free Report) may be another strong Industrial Services stock to add to your shortlist. KIGRY is a Zacks Rank of #2 (Buy) stock with a Value grade of A.

Additionally, Kion Group has a P/B ratio of 1.38 while its industry's price-to-book ratio sits at 18.00. For KIGRY, this valuation metric has been as high as 1.41, as low as 0.62, with a median of 0.94 over the past year.

These are only a few of the key metrics included in Hudson Technologies and Kion Group strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, HDSN and KIGRY look like an impressive value stock at the moment.


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