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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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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 Hub Group (HUBG - Free Report) . HUBG is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 11.76, while its industry has an average P/E of 16.33. Over the last 12 months, HUBG's Forward P/E has been as high as 31.41 and as low as 10.96, with a median of 17.80.

Investors should also recognize that HUBG has a P/B ratio of 1.37. 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 solid versus its industry's average P/B of 3.33. Over the past year, HUBG's P/B has been as high as 2.36 and as low as 1.27, with a median of 1.99.

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. HUBG has a P/S ratio of 0.3. This compares to its industry's average P/S of 0.69.

Finally, our model also underscores that HUBG has a P/CF ratio of 3.77. 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. HUBG's current P/CF looks attractive when compared to its industry's average P/CF of 14.50. Over the past year, HUBG's P/CF has been as high as 8.78 and as low as 3.50, with a median of 7.33.

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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