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Should Value Investors Buy Huntington Ingalls Industries (HII) Stock?
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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 Huntington Ingalls Industries (HII - Free Report) . HII is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 12.66. This compares to its industry's average Forward P/E of 19.89. Over the past 52 weeks, HII's Forward P/E has been as high as 16.90 and as low as 11.78, with a median of 14.58.
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 prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. HII has a P/S ratio of 0.82. This compares to its industry's average P/S of 1.58.
Value investors will likely look at more than just these metrics, but the above data helps show that Huntington Ingalls Industries is likely undervalued currently. And when considering the strength of its earnings outlook, HII sticks out at as one of the market's strongest value stocks.
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Should Value Investors Buy Huntington Ingalls Industries (HII) Stock?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 Huntington Ingalls Industries (HII - Free Report) . HII is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 12.66. This compares to its industry's average Forward P/E of 19.89. Over the past 52 weeks, HII's Forward P/E has been as high as 16.90 and as low as 11.78, with a median of 14.58.
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 prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. HII has a P/S ratio of 0.82. This compares to its industry's average P/S of 1.58.
Value investors will likely look at more than just these metrics, but the above data helps show that Huntington Ingalls Industries is likely undervalued currently. And when considering the strength of its earnings outlook, HII sticks out at as one of the market's strongest value stocks.