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Is Hub Group (HUBG) 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.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. 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.

Hub Group (HUBG - Free Report) is a stock many investors are watching right now. HUBG is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 13.22, while its industry has an average P/E of 17.87. Over the past 52 weeks, HUBG's Forward P/E has been as high as 17.63 and as low as 10.96, with a median of 12.89.

Investors should also recognize that HUBG has a P/B ratio of 1.52. 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 solid versus its industry's average P/B of 3.70. HUBG's P/B has been as high as 2.08 and as low as 1.26, with a median of 1.47, over 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. HUBG has a P/S ratio of 0.41. This compares to its industry's average P/S of 0.76.

Finally, our model also underscores that HUBG has a P/CF ratio of 4.80. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. HUBG's P/CF compares to its industry's average P/CF of 17.94. HUBG's P/CF has been as high as 7.21 and as low as 3.50, with a median of 4.63, all within the past year.

These are just a handful of the figures considered in Hub Group'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 HUBG is an impressive value stock right now.


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