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Is Warrior Met Coal (HCC) a Great Value Stock Right Now?

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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore 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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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 company to watch right now is Warrior Met Coal (HCC - Free Report) . HCC is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 3.13 right now. For comparison, its industry sports an average P/E of 3.29. HCC's Forward P/E has been as high as 18.61 and as low as 3.11, with a median of 4.75, all within the past year.

Investors should also recognize that HCC has a P/B ratio of 1.38. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. HCC's current P/B looks attractive when compared to its industry's average P/B of 1.87. Over the past 12 months, HCC's P/B has been as high as 2.52 and as low as 1.21, with a median of 1.68.

Finally, investors should note that HCC has a P/CF ratio of 3.06. 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. HCC's P/CF compares to its industry's average P/CF of 5.12. HCC's P/CF has been as high as 19.28 and as low as 3.05, with a median of 6.88, all within the past year.

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


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