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Is Heidrick & Struggles International (HSII) 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.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

Heidrick & Struggles International (HSII - Free Report) is a stock many investors are watching right now. HSII is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock is trading with a P/E ratio of 13.69, which compares to its industry's average of 16.38. Over the past 52 weeks, HSII's Forward P/E has been as high as 15.88 and as low as 7.83, with a median of 10.71.

HSII is also sporting a PEG ratio of 0.86. 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. HSII's industry has an average PEG of 1.20 right now. Within the past year, HSII's PEG has been as high as 0.99 and as low as 0.57, with a median of 0.80.

We should also highlight that HSII has a P/B ratio of 1.68. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 2.20. Over the past year, HSII's P/B has been as high as 1.82 and as low as 1.05, with a median of 1.35.

Finally, investors will want to recognize that HSII has a P/CF ratio of 13.49. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. HSII's current P/CF looks attractive when compared to its industry's average P/CF of 13.75. Within the past 12 months, HSII's P/CF has been as high as 14.59 and as low as 6.58, with a median of 8.93.

Another great Staffing Firms stock you could consider is RCM Technologies (RCMT - Free Report) , which is a # 1 (Strong Buy) stock with a Value Score of A.

Furthermore, RCM Technologies holds a P/B ratio of 5.47 and its industry's price-to-book ratio is 2.20. RCMT's P/B has been as high as 11.03, as low as 4.90, with a median of 6.66 over the past 12 months.

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


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