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Is Huntington Ingalls Industries (HII) a Great Value Stock Right Now?
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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. 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 to watch right now is Huntington Ingalls Industries (HII - Free Report) . HII is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 16.92. This compares to its industry's average Forward P/E of 28.42. Over the past 52 weeks, HII's Forward P/E has been as high as 17.86 and as low as 10.03, with a median of 14.23.
Investors should also note that HII holds a PEG ratio of 1.43. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. HII's PEG compares to its industry's average PEG of 2.05. Within the past year, HII's PEG has been as high as 2.13 and as low as 1.02, with a median of 1.46.
We should also highlight that HII has a P/B ratio of 2.21. 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 6.48. HII's P/B has been as high as 2.53 and as low as 1.34, with a median of 1.86, 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 popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. HII has a P/S ratio of 0.98. This compares to its industry's average P/S of 2.17.
Finally, our model also underscores that HII has a P/CF ratio of 12.71. 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. HII's P/CF compares to its industry's average P/CF of 34.91. Within the past 12 months, HII's P/CF has been as high as 12.88 and as low as 7.07, with a median of 9.79.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Huntington Ingalls Industries is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, HII feels like a great value stock at the moment.
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Is Huntington Ingalls Industries (HII) a Great Value Stock Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. 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 to watch right now is Huntington Ingalls Industries (HII - Free Report) . HII is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 16.92. This compares to its industry's average Forward P/E of 28.42. Over the past 52 weeks, HII's Forward P/E has been as high as 17.86 and as low as 10.03, with a median of 14.23.
Investors should also note that HII holds a PEG ratio of 1.43. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. HII's PEG compares to its industry's average PEG of 2.05. Within the past year, HII's PEG has been as high as 2.13 and as low as 1.02, with a median of 1.46.
We should also highlight that HII has a P/B ratio of 2.21. 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 6.48. HII's P/B has been as high as 2.53 and as low as 1.34, with a median of 1.86, 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 popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. HII has a P/S ratio of 0.98. This compares to its industry's average P/S of 2.17.
Finally, our model also underscores that HII has a P/CF ratio of 12.71. 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. HII's P/CF compares to its industry's average P/CF of 34.91. Within the past 12 months, HII's P/CF has been as high as 12.88 and as low as 7.07, with a median of 9.79.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Huntington Ingalls Industries is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, HII feels like a great value stock at the moment.