Back to top

Image: Bigstock

Is Huntsman (HUN) Stock Undervalued Right Now?

Read MoreHide Full Article

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

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.

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 stock to keep an eye on is Huntsman (HUN - Free Report) . HUN 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 7.81, which compares to its industry's average of 12.81. HUN's Forward P/E has been as high as 16.34 and as low as 7.74, with a median of 10.83, all within the past year.

We also note that HUN holds a PEG ratio of 0.92. 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. HUN's PEG compares to its industry's average PEG of 1.17. Within the past year, HUN's PEG has been as high as 2.33 and as low as 0.91, with a median of 1.31.

We should also highlight that HUN has a P/B ratio of 1.66. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. HUN's current P/B looks attractive when compared to its industry's average P/B of 1.75. Within the past 52 weeks, HUN's P/B has been as high as 3.54 and as low as 1.64, with a median of 2.11.

Finally, our model also underscores that HUN has a P/CF ratio of 5.07. 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. This stock's P/CF looks attractive against its industry's average P/CF of 15.11. Over the past 52 weeks, HUN's P/CF has been as high as 9.44 and as low as 5.02, with a median of 7.56.

These are just a handful of the figures considered in Huntsman's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that HUN is an impressive value stock right now.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Huntsman Corporation (HUN) - free report >>