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.
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.
HF FOODS GROUP (HFFG) is a stock many investors are watching right now. HFFG is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 5.99. This compares to its industry's average Forward P/E of 15.98. Over the past year, HFFG's Forward P/E has been as high as 14.56 and as low as 3.67, with a median of 7.11.
Finally, investors should note that HFFG has a P/CF ratio of 6.03. 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 14.30. HFFG's P/CF has been as high as 8.55 and as low as 3.67, with a median of 5.97, all within the past year.
These are only a few of the key metrics included in HF FOODS 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, HFFG looks like an impressive value stock at the moment.
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This article originally published on Zacks Investment Research (zacks.com).
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