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Is Haverty Furniture (HVT) a Great Value Stock Right Now?

Zacks Equity Research
·2 min read

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.

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 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 stock to keep an eye on is Haverty Furniture (HVT). HVT is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 9.94 right now. For comparison, its industry sports an average P/E of 16.85. HVT's Forward P/E has been as high as 30.88 and as low as 9.41, with a median of 19, all within the past year.

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Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. 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 0.92. This compares to its industry's average P/S of 1.16.

Finally, we should also recognize that HVT has a P/CF ratio of 8.21. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. HVT's current P/CF looks attractive when compared to its industry's average P/CF of 20.57. Within the past 12 months, HVT's P/CF has been as high as 10.32 and as low as 5.70, with a median of 8.37.

These are only a few of the key metrics included in Haverty Furniture'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, HVT looks like an impressive value stock at the moment.


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