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Is Hennes & Mauritz (HNNMY) 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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of 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.

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 Hennes & Mauritz (HNNMY - Free Report) . HNNMY is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A.

Investors should also recognize that HNNMY has a P/B ratio of 6.09. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. HNNMY's current P/B looks attractive when compared to its industry's average P/B of 7.47. HNNMY's P/B has been as high as 6.27 and as low as 4.01, with a median of 4.87, over the past year.

Finally, our model also underscores that HNNMY has a P/CF ratio of 8.11. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 18.95. HNNMY's P/CF has been as high as 9.27 and as low as 6.08, with a median of 7.14, all within the past year.

Value investors will likely look at more than just these metrics, but the above data helps show that Hennes & Mauritz is likely undervalued currently. And when considering the strength of its earnings outlook, HNNMY sticks out as one of the market's strongest value stocks.


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