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.
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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.
One company value investors might notice is Haverty Furniture (HVT). HVT is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 15.94. This compares to its industry’s average Forward P/E of 18.49. Over the last 12 months, HVT’s Forward P/E has been as high as 30.88 and as low as -253.50, with a median of 16.50.
Another valuation metric that we should highlight is HVT’s P/B ratio of 1.86. The P/B ratio is used to compare a stock’s market value with its book value, which is defined as total assets minus total liabilities. HVT’s current P/B looks attractive when compared to its industry’s average P/B of 5.04. Within the past 52 weeks, HVT’s P/B has been as high as 1.86 and as low as 0.74, with a median of 1.42.
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 prefered metric because revenue can’t really be manipulated, so sales are often a truer performance indicator. HVT has a P/S ratio of 0.67. This compares to its industry’s average P/S of 0.71.
Finally, investors will want to recognize that HVT has a P/CF ratio of 8.45. 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. HVT’s P/CF compares to its industry’s average P/CF of 21.94. HVT’s P/CF has been as high as 9.65 and as low as 4.96, with a median of 8.11, all within the past year.
These are only a few of the key metrics included in Haverty Furniture’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, HVT looks like an impressive value stock at the moment.
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Haverty Furniture Companies, Inc. (HVT): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.