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Is Hilltop Holdings (HTH) Stock Undervalued Right Now?

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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.

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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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 Hilltop Holdings (HTH - Free Report) . HTH is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value.

Investors should also recognize that HTH has a P/B ratio of 1.03. The P/B ratio is used to compare a stock's market value with 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 1.80. Within the past 52 weeks, HTH's P/B has been as high as 1.10 and as low as 0.84, with a median of 0.95.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. HTH has a P/S ratio of 1.47. This compares to its industry's average P/S of 1.9.

Value investors will likely look at more than just these metrics, but the above data helps show that Hilltop Holdings is likely undervalued currently. And when considering the strength of its earnings outlook, HTH sticks out at as one of the market's strongest value stocks.


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