Yahoo Finance Should Value Investors Buy Helix Energy Solutions Group (HLX) Stock?
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One stock to keep an eye on is Helix Energy Solutions Group (HLX). HLX is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 12.02, which compares to its industry's average of 12.35. Over the past year, HLX's Forward P/E has been as high as 48.95 and as low as 9.53, with a median of 13.13.
Another notable valuation metric for HLX is its P/B ratio of 0.89. Investors use the P/B ratio to look at a stock's market value versus 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 2.40. Within the past 52 weeks, HLX's P/B has been as high as 1.15 and as low as 0.63, with a median of 0.92.
Finally, our model also underscores that HLX has a P/CF ratio of 7.57. 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. HLX's current P/CF looks attractive when compared to its industry's average P/CF of 8.31. Over the past 52 weeks, HLX's P/CF has been as high as 23.10 and as low as 7.41, with a median of 10.11.
Value investors will likely look at more than just these metrics, but the above data helps show that Helix Energy Solutions Group is likely undervalued currently. And when considering the strength of its earnings outlook, HLX sticks out at as one of the market's strongest value stocks.
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Helix Energy Solutions Group, Inc. (HLX) : Free Stock Analysis Report