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Is HeritageCrystal Clean (HCCI) a Great Value Stock 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.

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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One stock to keep an eye on is HeritageCrystal Clean . HCCI is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock holds a P/E ratio of 10.84, while its industry has an average P/E of 21.85. HCCI's Forward P/E has been as high as 21.80 and as low as 10.77, with a median of 15.68, all within the past year.

We also note that HCCI holds a PEG ratio of 0.72. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. HCCI's industry currently sports an average PEG of 1.76. Over the past 52 weeks, HCCI's PEG has been as high as 1.45 and as low as 0.72, with a median of 1.05.

Investors should also recognize that HCCI has a P/B ratio of 2.10. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 5.07. Over the past 12 months, HCCI's P/B has been as high as 2.66 and as low as 1.65, with a median of 2.09.

Finally, we should also recognize that HCCI has a P/CF ratio of 7.92. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. HCCI's P/CF compares to its industry's average P/CF of 16.64. Over the past 52 weeks, HCCI's P/CF has been as high as 12.43 and as low as 6.30, with a median of 8.13.

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

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