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Is HCI Group (HCI) Stock Undervalued Right Now?

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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, value investing is easily one of the most popular ways to find great stocks in any market environment. 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 HCI Group (HCI - Free Report) . HCI is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 9.94, while its industry has an average P/E of 29.07. Over the past 52 weeks, HCI's Forward P/E has been as high as 18.71 and as low as 7.11, with a median of 10.53.

Finally, investors should note that HCI has a P/CF ratio of 10.04. 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. This stock's P/CF looks attractive against its industry's average P/CF of 11.99. Over the past 52 weeks, HCI's P/CF has been as high as 16.11 and as low as 7.12, with a median of 11.60.

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


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