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Are Investors Undervaluing Heidrick & Struggles International (HSII) 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.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. 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 company value investors might notice is Heidrick & Struggles International (HSII - Free Report) . HSII is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 9.38. This compares to its industry's average Forward P/E of 13.77. HSII's Forward P/E has been as high as 14.95 and as low as 7.23, with a median of 10.54, all within the past year.

We should also highlight that HSII has a P/B ratio of 1.27. The P/B ratio pits a stock's market value against 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 2.20. HSII's P/B has been as high as 1.73 and as low as 1.14, with a median of 1.43, over the past year.

Finally, our model also underscores that HSII has a P/CF ratio of 7.43. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 9.45. Over the past year, HSII's P/CF has been as high as 8.02 and as low as 5.56, with a median of 6.68.

GEE Group (JOB - Free Report) may be another strong Staffing Firms stock to add to your shortlist. JOB is a # 1 (Strong Buy) stock with a Value grade of A.

Shares of GEE Group currently holds a Forward P/E ratio of 5.25, and its PEG ratio is 0.35. In comparison, its industry sports average P/E and PEG ratios of 13.77 and 1.64.

JOB's Forward P/E has been as high as 8.57 and as low as 4.58, with a median of 6.39. During the same time period, its PEG ratio has been as high as 0.57, as low as 0.31, with a median of 0.43.

Furthermore, GEE Group holds a P/B ratio of 0.54 and its industry's price-to-book ratio is 2.20. JOB's P/B has been as high as 0.90, as low as 0.41, with a median of 0.57 over the past 12 months.

Value investors will likely look at more than just these metrics, but the above data helps show that Heidrick & Struggles International and GEE Group are likely undervalued currently. And when considering the strength of its earnings outlook, HSII and JOB sticks out as one of the market's strongest value stocks.


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