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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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. 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.
HP (HPQ - Free Report) is a stock many investors are watching right now. HPQ is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 8.81, while its industry has an average P/E of 14.28. HPQ's Forward P/E has been as high as 12.60 and as low as 8.40, with a median of 10.79, all within the past year.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by 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. HPQ has a P/S ratio of 0.52. This compares to its industry's average P/S of 0.99.
Finally, our model also underscores that HPQ has a P/CF ratio of 6.32. 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. HPQ's current P/CF looks attractive when compared to its industry's average P/CF of 10.28. Over the past year, HPQ's P/CF has been as high as 8.52 and as low as 5.29, with a median of 7.42.
These are only a few of the key metrics included in HP'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, HPQ looks like an impressive value stock at the moment.
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Is HP (HPQ) a Great Value Stock Right Now?
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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. 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.
HP (HPQ - Free Report) is a stock many investors are watching right now. HPQ is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 8.81, while its industry has an average P/E of 14.28. HPQ's Forward P/E has been as high as 12.60 and as low as 8.40, with a median of 10.79, all within the past year.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by 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. HPQ has a P/S ratio of 0.52. This compares to its industry's average P/S of 0.99.
Finally, our model also underscores that HPQ has a P/CF ratio of 6.32. 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. HPQ's current P/CF looks attractive when compared to its industry's average P/CF of 10.28. Over the past year, HPQ's P/CF has been as high as 8.52 and as low as 5.29, with a median of 7.42.
These are only a few of the key metrics included in HP'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, HPQ looks like an impressive value stock at the moment.