Back to top

Image: Bigstock

Should Value Investors Buy Hannover Ruck (HVRRY) Stock?

Read MoreHide Full Article

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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.

Hannover Ruck (HVRRY - Free Report) is a stock many investors are watching right now. HVRRY 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 11 right now. For comparison, its industry sports an average P/E of 18.14. Over the past 52 weeks, 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 valuation metric that we should highlight is HVRRY's 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 company's current P/B looks solid when compared to its industry's average P/B of 4.01. Within the past 52 weeks, 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 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 1.3. This compares to its industry's average P/S of 3.25.

Finally, investors should note that HVRRY has a P/CF ratio of 12.86. 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 19.02. 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.

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


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Hannover Ruck SE (HVRRY) - free report >>

Published in