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Are Investors Undervaluing Huntington Ingalls Industries (HII) 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.
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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.
Huntington Ingalls Industries (HII - Free Report) is a stock many investors are watching right now. HII is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 16.08, which compares to its industry's average of 19.76. HII's Forward P/E has been as high as 17.82 and as low as 12.54, with a median of 14.20, all within the past year.
Investors will also notice that HII has a PEG ratio of 2.05. 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. HII's industry currently sports an average PEG of 2.23. Over the last 12 months, HII's PEG has been as high as 2.22 and as low as 1.77, with a median of 1.95.
Investors should also recognize that HII has a P/B ratio of 2.60. 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. HII's current P/B looks attractive when compared to its industry's average P/B of 3.27. Within the past 52 weeks, HII's P/B has been as high as 2.76 and as low as 2.13, with a median of 2.44.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. HII has a P/S ratio of 0.92. This compares to its industry's average P/S of 1.57.
Finally, investors should note that HII has a P/CF ratio of 10.29. 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. HII's current P/CF looks attractive when compared to its industry's average P/CF of 21.73. Over the past year, HII's P/CF has been as high as 11.64 and as low as 8.23, with a median of 9.61.
Value investors will likely look at more than just these metrics, but the above data helps show that Huntington Ingalls Industries is likely undervalued currently. And when considering the strength of its earnings outlook, HII sticks out at as one of the market's strongest value stocks.
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Are Investors Undervaluing Huntington Ingalls Industries (HII) Right Now?
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.
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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.
Huntington Ingalls Industries (HII - Free Report) is a stock many investors are watching right now. HII is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 16.08, which compares to its industry's average of 19.76. HII's Forward P/E has been as high as 17.82 and as low as 12.54, with a median of 14.20, all within the past year.
Investors will also notice that HII has a PEG ratio of 2.05. 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. HII's industry currently sports an average PEG of 2.23. Over the last 12 months, HII's PEG has been as high as 2.22 and as low as 1.77, with a median of 1.95.
Investors should also recognize that HII has a P/B ratio of 2.60. 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. HII's current P/B looks attractive when compared to its industry's average P/B of 3.27. Within the past 52 weeks, HII's P/B has been as high as 2.76 and as low as 2.13, with a median of 2.44.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. HII has a P/S ratio of 0.92. This compares to its industry's average P/S of 1.57.
Finally, investors should note that HII has a P/CF ratio of 10.29. 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. HII's current P/CF looks attractive when compared to its industry's average P/CF of 21.73. Over the past year, HII's P/CF has been as high as 11.64 and as low as 8.23, with a median of 9.61.
Value investors will likely look at more than just these metrics, but the above data helps show that Huntington Ingalls Industries is likely undervalued currently. And when considering the strength of its earnings outlook, HII sticks out at as one of the market's strongest value stocks.