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.
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.
Herbalife Ltd (HLF) is a stock many investors are watching right now. HLF is currently holding a Zacks Rank #1 (Strong Buy) and a Value grade of A. The stock has a Forward P/E ratio of 4.21. This compares to its industry's average Forward P/E of 6.41. Over the last 12 months, HLF's Forward P/E has been as high as 5.54 and as low as 3.01, with a median of 4.25.
Finally, we should also recognize that HLF has a P/CF ratio of 2.12. 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 stock's P/CF looks attractive against its industry's average P/CF of 3.79. Within the past 12 months, HLF's P/CF has been as high as 4.26 and as low as 1.39, with a median of 2.19.
These are only a few of the key metrics included in Herbalife Ltd'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, HLF looks like an impressive value stock at the moment.
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Herbalife Ltd (HLF): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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