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Is Heidrick & Struggles International (HSII) Stock Undervalued Right Now?

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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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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 holds a P/E ratio of 9.32, while its industry has an average P/E of 16.82. Over the past 52 weeks, HSII's Forward P/E has been as high as 14.95 and as low as 7.23, with a median of 9.79.

Investors should also recognize that HSII has a P/B ratio of 1.29. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 2.42. Over the past year, HSII's P/B has been as high as 1.69 and as low as 1.05, with a median of 1.27.

Finally, our model also underscores that HSII has a P/CF ratio of 8.03. 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. HSII's P/CF compares to its industry's average P/CF of 11.64. Over the past year, HSII's P/CF has been as high as 8.20 and as low as 5.56, with a median of 7.

Another great Staffing Firms stock you could consider is KornFerry International (KFY - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.

KornFerry International also has a P/B ratio of 1.84 compared to its industry's price-to-book ratio of 2.42. Over the past year, its P/B ratio has been as high as 1.90, as low as 1.38, with a median of 1.62.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Heidrick & Struggles International and KornFerry International are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, HSII and KFY feels like a great value stock at the moment.


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