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Is Harte Hanks (HHS) Stock Undervalued Right Now?

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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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of 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.

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 company value investors might notice is Harte Hanks (HHS - Free Report) . HHS 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 5.58 right now. For comparison, its industry sports an average P/E of 10.30. HHS's Forward P/E has been as high as 14.16 and as low as -33.01, with a median of 7.45, all within the past year.

Finally, investors should note that HHS has a P/CF ratio of 3.23. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 12.83. HHS's P/CF has been as high as 5.44 and as low as -8.16, with a median of 3.17, all within the past year.

These are only a few of the key metrics included in Harte Hanks'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, HHS looks like an impressive value stock at the moment.


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