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Are Investors Undervaluing Hannover Ruck (HVRRY) 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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One stock to keep an eye on is Hannover Ruck (HVRRY - Free Report) . HVRRY is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 11 right now. For comparison, its industry sports an average P/E of 17.55. Over the last 12 months, HVRRY's Forward P/E has been as high as 14.05 and as low as 11.00, with a median of 12.34.

Another notable valuation metric for HVRRY is its P/B ratio of 2.42. The P/B is a method of comparing a stock's market value to 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 3.71. Over the past 12 months, HVRRY's P/B has been as high as 2.92 and as low as 2.19, with a median of 2.52.

Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. HVRRY has a P/S ratio of 1.24. This compares to its industry's average P/S of 3.08.

Finally, we should also recognize that HVRRY has a P/CF ratio of 12.86. 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 current P/CF looks attractive when compared to its industry's average P/CF of 18.21. 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 13.54.

These are only a few of the key metrics included in Hannover Ruck's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, HVRRY looks like an impressive value stock at the moment.


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