Back to top

Image: Bigstock

Is Hilltop Holdings (HTH) Stock Undervalued Right Now?

Read MoreHide Full Article

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, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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.

One company value investors might notice is Hilltop Holdings (HTH - Free Report) . HTH is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 11.38. This compares to its industry's average Forward P/E of 12.59. HTH's Forward P/E has been as high as 12.90 and as low as 6.38, with a median of 9.72, all within the past year.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. HTH has a P/S ratio of 1.19. This compares to its industry's average P/S of 2.67.

Finally, investors should note that HTH has a P/CF ratio of 5.76. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. HTH's current P/CF looks attractive when compared to its industry's average P/CF of 11. Over the past year, HTH's P/CF has been as high as 8.94 and as low as 4.67, with a median of 5.81.

These are just a handful of the figures considered in Hilltop Holdings'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 HTH is an impressive value stock right now.


See More Zacks Research for These Tickers


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


Hilltop Holdings Inc. (HTH) - free report >>

Published in