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Is Hudson Ltd. (HUD) 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.

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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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 Hudson Ltd. . HUD is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value.

We also note that HUD holds a PEG ratio of 0.65. 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. HUD's industry currently sports an average PEG of 1.05. HUD's PEG has been as high as 2.90 and as low as 0.65, with a median of 0.84, all within the past year.

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 popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. HUD has a P/S ratio of 0.85. This compares to its industry's average P/S of 1.44.

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

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