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Are Investors Undervaluing Harte Hanks (HHS) 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, value investing is easily one of the most popular ways to find great stocks in any market environment. 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 stock to keep an eye on is Harte Hanks (HHS - Free Report) . HHS is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 8.73, while its industry has an average P/E of 8.83. Over the past 52 weeks, HHS's Forward P/E has been as high as 14.16 and as low as 4.25, with a median of 7.69.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. HHS has a P/S ratio of 0.42. This compares to its industry's average P/S of 0.99.

Finally, investors will want to recognize that HHS has a P/CF ratio of 3.96. 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. HHS's current P/CF looks attractive when compared to its industry's average P/CF of 10.29. Over the past year, HHS's P/CF has been as high as 5.44 and as low as 2.38, with a median of 3.23.

Value investors will likely look at more than just these metrics, but the above data helps show that Harte Hanks is likely undervalued currently. And when considering the strength of its earnings outlook, HHS sticks out at as one of the market's strongest value stocks.


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