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Should Value Investors Buy Huntsman (HUN) Stock?

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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.

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

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.

One stock to keep an eye on is Huntsman (HUN - Free Report) . HUN is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 12.65, while its industry has an average P/E of 12.88. Over the past 52 weeks, HUN's Forward P/E has been as high as 12.95 and as low as 5.69, with a median of 7.59.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. HUN has a P/S ratio of 0.68. This compares to its industry's average P/S of 0.95.

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


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