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Should Value Investors Buy Hannover Ruck (HVRRY) Stock?

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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.

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.

Hannover Ruck (HVRRY - Free Report) is a stock many investors are watching right now. HVRRY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 13.13. This compares to its industry's average Forward P/E of 21.99. Over the last 12 months, HVRRY's Forward P/E has been as high as 14.30 and as low as 11.07, with a median of 12.79.

Another notable valuation metric for HVRRY is its P/B ratio of 2.95. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. HVRRY's current P/B looks attractive when compared to its industry's average P/B of 6.56. Within the past 52 weeks, HVRRY's P/B has been as high as 3.04 and as low as 2.26, with a median of 2.60.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. HVRRY has a P/S ratio of 1.23. This compares to its industry's average P/S of 3.04.

These are only a few of the key metrics included in Hannover Ruck's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, HVRRY looks like an impressive value stock at the moment.


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