Should Value Investors Buy Halfords Group Plc (HLFDY) Stock?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
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.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company value investors might notice is Halfords Group Plc (HLFDY). HLFDY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 9.71. This compares to its industry's average Forward P/E of 10.66. Over the past 52 weeks, HLFDY's Forward P/E has been as high as 13.31 and as low as 8.84, with a median of 10.68.
Another notable valuation metric for HLFDY is its P/B ratio of 1.15. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. HLFDY's current P/B looks attractive when compared to its industry's average P/B of 2.55. Over the past year, HLFDY's P/B has been as high as 1.97 and as low as 1.15, with a median of 1.53.
Value investors will likely look at more than just these metrics, but the above data helps show that Halfords Group Plc is likely undervalued currently. And when considering the strength of its earnings outlook, HLFDY sticks out at as one of the market's strongest value stocks.
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