The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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.
Horace Mann Educators (HMN) is a stock many investors are watching right now. HMN is currently sporting a Zacks Rank #1 (Strong Buy), as well as a Value grade of A.
Another notable valuation metric for HMN is its P/B ratio of 1.31. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 2.72. Over the past year, HMN's P/B has been as high as 1.37 and as low as 1.09, with a median of 1.24.
Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by sales. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. HMN has a P/S ratio of 1.08. This compares to its industry's average P/S of 1.09.
Value investors will likely look at more than just these metrics, but the above data helps show that Horace Mann Educators is likely undervalued currently. And when considering the strength of its earnings outlook, HMN sticks out as one of the market's strongest value stocks.
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Horace Mann Educators Corporation (HMN): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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