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Are Investors Undervaluing Hannover Ruck (HVRRY) Right Now?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

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 company value investors might notice 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 P/E ratio of 11 right now. For comparison, its industry sports an average P/E of 19.93. Over the past year, HVRRY's Forward P/E has been as high as 14.05 and as low as 11.00, with a median of 12.34.

We should also highlight that HVRRY has a P/B ratio of 2.42. 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 4.76. HVRRY's P/B has been as high as 2.92 and as low as 2.19, with a median of 2.52, over the past year.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. HVRRY has a P/S ratio of 1.24. This compares to its industry's average P/S of 3.64.

Finally, our model also underscores that HVRRY has a P/CF ratio of 12.86. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 20.22. Over the past year, HVRRY's P/CF has been as high as 16.47 and as low as 11.94, with a median of 13.54.

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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