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Is Warrior Met Coal (HCC) a Great Value Stock Right Now?

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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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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 value investors might notice is Warrior Met Coal (HCC - Free Report) . HCC is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 3.84 right now. For comparison, its industry sports an average P/E of 7.69. Over the last 12 months, HCC's Forward P/E has been as high as 9.02 and as low as 3.24, with a median of 4.94.

Finally, we should also recognize that HCC has a P/CF ratio of 2.17. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 2.74. Over the past year, HCC's P/CF has been as high as 3.40 and as low as 1.94, with a median of 2.54.

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


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