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Is Harte Hanks (HHS) Stock Undervalued 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, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One company to watch right now is Harte Hanks (HHS - Free Report) . HHS is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock is trading with a P/E ratio of 8.03, which compares to its industry's average of 9.21. HHS's Forward P/E has been as high as 40.77 and as low as 4.24, with a median of 8.62, all within the past year.

We also note that HHS holds a PEG ratio of 0.67. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. HHS's industry currently sports an average PEG of 1.29. HHS's PEG has been as high as 3.40 and as low as 0.35, with a median of 0.72, all within the past year.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. 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 0.32. This compares to its industry's average P/S of 0.42.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Harte Hanks is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, HHS feels like a great value stock at the moment.


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