Back to top

Image: Bigstock

Is Home Bancorp (HBCP) a Great Value Stock Right Now?

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.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. 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 Home Bancorp (HBCP - Free Report) . HBCP is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.

Investors should also recognize that HBCP has a P/B ratio of 0.87. 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 attractive against its industry's average P/B of 0.91. HBCP's P/B has been as high as 1.20 and as low as 0.57, with a median of 0.75, over the past year.

Finally, our model also underscores that HBCP has a P/CF ratio of 8.70. 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. This stock's P/CF looks attractive against its industry's average P/CF of 11. HBCP's P/CF has been as high as 9.05 and as low as 4.45, with a median of 7.50, all within the past year.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Home Bancorp is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, HBCP feels like a great value stock at the moment.


In-Depth Zacks Research for the Tickers Above


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


Home Bancorp, Inc. (HBCP) - free report >>

Published in