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Are Investors Undervaluing Hawaiian Holdings (HA) Right Now?

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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.

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 use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One stock to keep an eye on is Hawaiian Holdings (HA - Free Report) . HA is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 7.84 right now. For comparison, its industry sports an average P/E of 9.06. Over the past 52 weeks, HA's Forward P/E has been as high as 8.36 and as low as 4.77, with a median of 7.02.

Another valuation metric that we should highlight is HA's P/B ratio of 1.33. 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. HA's current P/B looks attractive when compared to its industry's average P/B of 2.47. Over the past year, HA's P/B has been as high as 2.02 and as low as 1.09, with a median of 1.32.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. HA has a P/S ratio of 0.5. This compares to its industry's average P/S of 0.67.

Finally, we should also recognize that HA has a P/CF ratio of 4.11. 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. HA's P/CF compares to its industry's average P/CF of 5.27. Over the past year, HA's P/CF has been as high as 4.36 and as low as 2.71, with a median of 3.54.

These are only a few of the key metrics included in Hawaiian Holdings's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, HA looks like an impressive value stock at the moment.


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