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.

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.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One stock to keep an eye on is Haverty Furniture Companies (HVT). HVT is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 10.91, which compares to its industry's average of 20.20. Over the past year, HVT's Forward P/E has been as high as 23.87 and as low as 9.18, with a median of 11.62.

HVT is also sporting a PEG ratio of 0.91. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. HVT's PEG compares to its industry's average PEG of 2.40. Within the past year, HVT's PEG has been as high as 1.99 and as low as 0.76, with a median of 0.97.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. HVT has a P/S ratio of 0.6. This compares to its industry's average P/S of 1.23.

Finally, investors will want to recognize that HVT has a P/CF ratio of 8.88. 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 13.38. HVT's P/CF has been as high as 9.88 and as low as 6.43, with a median of 8.49, all within the past year.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Haverty Furniture Companies is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, HVT feels like a great value stock at the moment.

7 Best Stocks for the Next 30 Days

Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."

Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.9% per year. So be sure to give these hand picked 7 your immediate attention. 

See them now >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

 

Haverty Furniture Companies, Inc. (HVT): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research