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Should Value Investors Buy Horace Mann Educators (HMN) Stock?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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 company value investors might notice is Horace Mann Educators (HMN - Free Report) . HMN is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.

Investors should also recognize that HMN has a P/B ratio of 1.19. 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 2.36. HMN's P/B has been as high as 1.35 and as low as 1.09, with a median of 1.20, over the past year.

Finally, investors should note that HMN has a P/CF ratio of 11.89. 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. HMN's current P/CF looks attractive when compared to its industry's average P/CF of 12.51. HMN's P/CF has been as high as 21.99 and as low as 10.91, with a median of 13.62, all within the past year.

These are just a handful of the figures considered in Horace Mann Educators's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that HMN is an impressive value stock right now.


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