Are These Business Services Stocks Undervalued 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.
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 to watch right now is HeadHunter Group (HHR). HHR is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 7.05 right now. For comparison, its industry sports an average P/E of 16.06. HHR's Forward P/E has been as high as 39.49 and as low as 7.05, with a median of 32.83, all within the past year.
Finally, investors should note that HHR has a P/CF ratio of 10.25. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 19.86. HHR's P/CF has been as high as 55.87 and as low as 10.25, with a median of 42.14, all within the past year.
Another great Business - Services stock you could consider is Mitie Group (MITFY), which is a # 2 (Buy) stock with a Value Score of A.
Furthermore, Mitie Group holds a P/B ratio of 2.18 and its industry's price-to-book ratio is 3.31. MITFY's P/B has been as high as 5.10, as low as 2.18, with a median of 2.76 over the past 12 months.
These figures are just a handful of the metrics value investors tend to look at, but they help show that HeadHunter Group and Mitie Group are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, HHR and MITFY feels like a great value stock at the moment.
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Mitie Group PLC. (MITFY) : Free Stock Analysis Report
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