Are Investors Undervaluing Hibbett Sports (HIBB) 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. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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.

One stock to keep an eye on is Hibbett Sports (HIBB). HIBB is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock has a Forward P/E ratio of 9.72. This compares to its industry's average Forward P/E of 13.01. Over the past 52 weeks, HIBB's Forward P/E has been as high as 13.17 and as low as 6.79, with a median of 10.18.

HIBB is also sporting a PEG ratio of 0.79. 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 PEG compares to its industry's average PEG of 1.27. Over the past 52 weeks, HIBB's PEG has been as high as 5.45 and as low as 0.62, with a median of 1.22.

Finally, we should also recognize that HIBB has a P/CF ratio of 7.72. 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. HIBB's current P/CF looks attractive when compared to its industry's average P/CF of 19.80. HIBB's P/CF has been as high as 8.49 and as low as 4.53, with a median of 6.16, 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 Hibbett Sports is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, HIBB feels like a great value stock at the moment.

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