Back to top

Should Value Investors Buy First Hawaiian (FHB) Stock?

Read MoreHide Full Article

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.

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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One company value investors might notice is First Hawaiian (FHB - Free Report) . FHB is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 12.81, while its industry has an average P/E of 13.74. Over the past year, FHB's Forward P/E has been as high as 18.44 and as low as 12.81, with a median of 14.23.

FHB is also sporting a PEG ratio of 1.34. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. FHB's PEG compares to its industry's average PEG of 1.38. Within the past year, FHB's PEG has been as high as 5.02 and as low as 1.34, with a median of 2.01.

Another notable valuation metric for FHB is its P/B ratio of 1.53. 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 attractive against its industry's average P/B of 1.78. Over the past year, FHB's P/B has been as high as 1.78 and as low as 1.49, with a median of 1.59.

Finally, we should also recognize that FHB has a P/CF ratio of 14.28. 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. FHB's P/CF compares to its industry's average P/CF of 14.88. Within the past 12 months, FHB's P/CF has been as high as 18.31 and as low as 13.40, with a median of 15.11.

These are just a handful of the figures considered in First Hawaiian'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 FHB is an impressive value stock right now.




In-Depth Zacks Research for the Tickers Above


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


First Hawaiian, Inc. (FHB) - free report >>

More from Zacks Tale of the Tape

You May Like