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Is Hibbett Sports (HIBB) Stock Undervalued Right Now?

Zacks Equity Research

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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 company value investors might notice is Hibbett Sports (HIBB). HIBB is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 10.13. This compares to its industry's average Forward P/E of 13.09. Over the past year, HIBB's Forward P/E has been as high as 13.17 and as low as 6.79, with a median of 9.86.

Investors should also note that HIBB holds a PEG ratio of 0.93. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. HIBB's industry has an average PEG of 1.38 right now. Within the past year, HIBB's PEG has been as high as 5.45 and as low as 0.62, with a median of 1.29.

Finally, investors should note that HIBB has a P/CF ratio of 6.91. 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 19.33. Over the past 52 weeks, HIBB's P/CF has been as high as 7.57 and as low as 4.40, with a median of 5.68.

These are just a handful of the figures considered in Hibbett Sports'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 HIBB is an impressive value stock right now.


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