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Is Hub Group (HUBG) Stock Undervalued 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.

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.

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 to watch right now is Hub Group (HUBG - Free Report) . HUBG is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock is trading with P/E ratio of 15.21 right now. For comparison, its industry sports an average P/E of 21.34. Over the last 12 months, HUBG's Forward P/E has been as high as 31.41 and as low as 15.12, with a median of 19.35.

We should also highlight that HUBG has a P/B ratio of 1.93. 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. This stock's P/B looks attractive against its industry's average P/B of 4.51. Within the past 52 weeks, HUBG's P/B has been as high as 2.49 and as low as 1.72, with a median of 2.14.

Finally, investors should note that HUBG has a P/CF ratio of 6.69. 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. HUBG's current P/CF looks attractive when compared to its industry's average P/CF of 19.09. Over the past 52 weeks, HUBG's P/CF has been as high as 14.89 and as low as 6.30, with a median of 7.76.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Hub Group is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, HUBG feels like a great value stock at the moment.


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