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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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest 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 an A grade for Value. The stock holds a P/E ratio of 9.69, while its industry has an average P/E of 16.26. Over the past year, HPQ's Forward P/E has been as high as 12.60 and as low as 8.40, with a median of 9.78.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. HPQ has a P/S ratio of 0.55. This compares to its industry's average P/S of 1.07.
Finally, investors will want to recognize that HPQ has a P/CF ratio of 7.28. 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 11.87. HPQ's P/CF has been as high as 8.52 and as low as 5.29, with a median of 6.76, all within the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that HP is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, HPQ feels like a great value stock at the moment.
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Is HP (HPQ) a Great Value Stock Right Now?
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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest 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 an A grade for Value. The stock holds a P/E ratio of 9.69, while its industry has an average P/E of 16.26. Over the past year, HPQ's Forward P/E has been as high as 12.60 and as low as 8.40, with a median of 9.78.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. HPQ has a P/S ratio of 0.55. This compares to its industry's average P/S of 1.07.
Finally, investors will want to recognize that HPQ has a P/CF ratio of 7.28. 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 11.87. HPQ's P/CF has been as high as 8.52 and as low as 5.29, with a median of 6.76, all within the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that HP is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, HPQ feels like a great value stock at the moment.