Are Investors Undervaluing Hanger (HNGR) 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 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.
Hanger (HNGR) is a stock many investors are watching right now. HNGR is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 18.33, while its industry has an average P/E of 19.88. Over the last 12 months, HNGR's Forward P/E has been as high as 126.02 and as low as 11.01, with a median of 26.01.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. HNGR has a P/S ratio of 0.59. This compares to its industry's average P/S of 1.13.
Finally, investors should note that HNGR has a P/CF ratio of 10.80. 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. HNGR's P/CF compares to its industry's average P/CF of 26.35. Over the past year, HNGR's P/CF has been as high as 16.53 and as low as 6.84, with a median of 12.85.
These are only a few of the key metrics included in Hanger'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, HNGR looks like an impressive value stock at the moment.
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