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Is Hub Group (HUBG) Stock Undervalued Right Now?

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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One company to watch right now is Hub Group (HUBG - Free Report) . HUBG is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock holds a P/E ratio of 17.41, while its industry has an average P/E of 22.04. Over the last 12 months, HUBG's Forward P/E has been as high as 31.41 and as low as 16.19, with a median of 19.75.

Another valuation metric that we should highlight is HUBG's P/B ratio of 2.26. The P/B ratio is used to compare a stock's market value with 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 4.60. Over the past 12 months, HUBG's P/B has been as high as 2.49 and as low as 1.72, with a median of 2.16.

Finally, investors will want to recognize that HUBG has a P/CF ratio of 7.57. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 20.07. Over the past 52 weeks, HUBG's P/CF has been as high as 14.89 and as low as 6.30, with a median of 8.07.

These are only a few of the key metrics included in Hub Group'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, HUBG looks like an impressive value stock at the moment.


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