Investors interested in Banks - Southeast stocks are likely familiar with Hancock Holding (HWC - Free Report) and Veritex Holdings (VBTX - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Right now, Hancock Holding is sporting a Zacks Rank of #2 (Buy), while Veritex Holdings has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that HWC likely has seen a stronger improvement to its earnings outlook than VBTX has recently. However, value investors will care about much more than just this.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
HWC currently has a forward P/E ratio of 13.13, while VBTX has a forward P/E of 17.73. We also note that HWC has a PEG ratio of 1.64. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. VBTX currently has a PEG ratio of 1.77.
Another notable valuation metric for HWC is its P/B ratio of 1.51. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, VBTX has a P/B of 1.57.
These metrics, and several others, help HWC earn a Value grade of A, while VBTX has been given a Value grade of D.
HWC has seen stronger estimate revision activity and sports more attractive valuation metrics than VBTX, so it seems like value investors will conclude that HWC is the superior option right now.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Investors interested in Banks - Southeast stocks are likely familiar with Hancock Holding (HWC - Free Report) and Veritex Holdings (VBTX - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Right now, Hancock Holding is sporting a Zacks Rank of #2 (Buy), while Veritex Holdings has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that HWC likely has seen a stronger improvement to its earnings outlook than VBTX has recently. However, value investors will care about much more than just this.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
HWC currently has a forward P/E ratio of 13.13, while VBTX has a forward P/E of 17.73. We also note that HWC has a PEG ratio of 1.64. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. VBTX currently has a PEG ratio of 1.77.
Another notable valuation metric for HWC is its P/B ratio of 1.51. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, VBTX has a P/B of 1.57.
These metrics, and several others, help HWC earn a Value grade of A, while VBTX has been given a Value grade of D.
HWC has seen stronger estimate revision activity and sports more attractive valuation metrics than VBTX, so it seems like value investors will conclude that HWC is the superior option right now.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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