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Is Harte Hanks (HHS) a Great Value Stock Right Now?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest 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) and an A for Value.

Investors will also notice that HHS has a PEG ratio of 0.70. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. HHS's industry has an average PEG of 1.69 right now. Over the last 12 months, HHS's PEG has been as high as 0.97 and as low as 0.70, with a median of 0.79.

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. HHS has a P/S ratio of 0.5. This compares to its industry's average P/S of 0.77.

Finally, our model also underscores that HHS has a P/CF ratio of 6.49. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 9.16. Within the past 12 months, HHS's P/CF has been as high as 7.98 and as low as 2.38, with a median of 3.23.

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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