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.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
Hibbett Sports (HIBB - Free Report) is a stock many investors are watching right now. HIBB is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 10.12 right now. For comparison, its industry sports an average P/E of 12.56. Over the past 52 weeks, HIBB's Forward P/E has been as high as 13.17 and as low as 6.79, with a median of 10.
Investors should also note that HIBB holds a PEG ratio of 0.83. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. HIBB's PEG compares to its industry's average PEG of 1.24. HIBB's PEG has been as high as 5.45 and as low as 0.62, with a median of 1.22, all within the past year.
Finally, investors will want to recognize that HIBB has a P/CF ratio of 8.14. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. HIBB's current P/CF looks attractive when compared to its industry's average P/CF of 19.07. Over the past 52 weeks, HIBB's P/CF has been as high as 8.71 and as low as 4.40, with a median of 5.78.
Value investors will likely look at more than just these metrics, but the above data helps show that Hibbett Sports is likely undervalued currently. And when considering the strength of its earnings outlook, HIBB sticks out at as one of the market's strongest value stocks.