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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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.
Hibbett Sports (HIBB) 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 10.72 right now. For comparison, its industry sports an average P/E of 20.13. HIBB's Forward P/E has been as high as 21.02 and as low as 2.93, with a median of 10.13, all within the past year.
Finally, investors should note that HIBB has a P/CF ratio of 10.34. 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. HIBB's P/CF compares to its industry's average P/CF of 14.79. Within the past 12 months, HIBB's P/CF has been as high as 30.07 and as low as 2.44, with a median of 7.64.
These are only a few of the key metrics included in Hibbett Sports'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, HIBB looks like an impressive value stock at the moment.
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