Are Investors Undervaluing Hennes & Mauritz (HNNMY) Right Now?

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.One company value investors might notice is Hennes & Mauritz (HNNMY). HNNMY is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. Another notable valuation metric for HNNMY is its P/B ratio of 6.09. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 6.76. Over the past 12 months, HNNMY's P/B has been as high as 6.27 and as low as 4.01, with a median of 4.87.Finally, we should also recognize that HNNMY has a P/CF ratio of 8.11. 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. HNNMY's current P/CF looks attractive when compared to its industry's average P/CF of 16.77. Over the past 52 weeks, HNNMY's P/CF has been as high as 9.27 and as low as 6.08, with a median of 7.14.These figures are just a handful of the metrics value investors tend to look at, but they help show that Hennes & Mauritz is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, HNNMY feels like a great value stock at the moment.#1 Semiconductor Stock to Buy (Not NVDA)The incredible demand for data is fueling the market's next digital gold rush. As data centers continue to be built and constantly upgraded, the companies that provide the hardware for these behemoths will become the NVIDIAs of tomorrow.One under-the-radar chipmaker is uniquely positioned to take advantage of the next growth stage of this market. It specializes in semiconductor products that titans like NVIDIA don't build. It's just beginning to enter the spotlight, which is exactly where you want to be.See This Stock Now for Free >>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 Hennes & Mauritz AB (HNNMY): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks