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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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 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 value investors might notice is HSBC (HSBC - Free Report) . HSBC is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 5.18 right now. For comparison, its industry sports an average P/E of 6.99. Over the past year, HSBC's Forward P/E has been as high as 9.12 and as low as 4.89, with a median of 5.83.
Investors will also notice that HSBC has a PEG ratio of 0.23. 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. HSBC's PEG compares to its industry's average PEG of 0.57. Over the past 52 weeks, HSBC's PEG has been as high as 0.42 and as low as 0.22, with a median of 0.31.
We should also highlight that HSBC has a P/B ratio of 0.83. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. HSBC's current P/B looks attractive when compared to its industry's average P/B of 1.43. Over the past year, HSBC's P/B has been as high as 0.89 and as low as 0.54, with a median of 0.74.
Finally, investors should note that HSBC has a P/CF ratio of 5.86. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 11.72. HSBC's P/CF has been as high as 8.39 and as low as 5.18, with a median of 6.19, 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 HSBC is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, HSBC feels like a great value stock at the moment.
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Should Value Investors Buy HSBC (HSBC) Stock?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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 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 value investors might notice is HSBC (HSBC - Free Report) . HSBC is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 5.18 right now. For comparison, its industry sports an average P/E of 6.99. Over the past year, HSBC's Forward P/E has been as high as 9.12 and as low as 4.89, with a median of 5.83.
Investors will also notice that HSBC has a PEG ratio of 0.23. 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. HSBC's PEG compares to its industry's average PEG of 0.57. Over the past 52 weeks, HSBC's PEG has been as high as 0.42 and as low as 0.22, with a median of 0.31.
We should also highlight that HSBC has a P/B ratio of 0.83. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. HSBC's current P/B looks attractive when compared to its industry's average P/B of 1.43. Over the past year, HSBC's P/B has been as high as 0.89 and as low as 0.54, with a median of 0.74.
Finally, investors should note that HSBC has a P/CF ratio of 5.86. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 11.72. HSBC's P/CF has been as high as 8.39 and as low as 5.18, with a median of 6.19, 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 HSBC is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, HSBC feels like a great value stock at the moment.