Are Investors Undervaluing Haverty Furniture (HVT) 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. Neverthe...
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 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.
Haverty Furniture (HVT) is a stock many investors are watching right now. HVT is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 6.78, while its industry has an average P/E of 16.11. Over the past 52 weeks, HVT's Forward P/E has been as high as 22.54 and as low as 6.77, with a median of 16.92.
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. HVT has a P/S ratio of 0.66. This compares to its industry's average P/S of 1.16.
Finally, our model also underscores that HVT has a P/CF ratio of 6.23. 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 21.83. Over the past year, HVT's P/CF has been as high as 10.32 and as low as 6.22, with a median of 8.17.
These are just a handful of the figures considered in Haverty Furniture's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that HVT is an impressive value stock right now.
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Haverty Furniture Companies, Inc. (HVT): Free Stock Analysis Report
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