Back to top

Image: Bigstock

Should Value Investors Buy Hancock Holding (HWC) Stock?

Read MoreHide Full Article

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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

Hancock Holding (HWC - Free Report) is a stock many investors are watching right now. HWC is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 10.68. This compares to its industry's average Forward P/E of 11.89. Over the past 52 weeks, HWC's Forward P/E has been as high as 18.44 and as low as 10.68, with a median of 13.19.

Another notable valuation metric for HWC is its P/B ratio of 1.30. The P/B ratio pits a stock's market value against 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 1.75. Within the past 52 weeks, HWC's P/B has been as high as 1.66 and as low as 1.30, with a median of 1.50.

Finally, investors will want to recognize that HWC has a P/CF ratio of 11.10. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 15.98. Over the past year, HWC's P/CF has been as high as 15.83 and as low as 11.10, with a median of 13.67.

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


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Hancock Whitney Corporation (HWC) - free report >>

Published in