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Are Investors Undervaluing Hilltop Holdings (HTH) Right Now?

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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.

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.

Hilltop Holdings (HTH - Free Report) is a stock many investors are watching right now. HTH is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.

Investors should also recognize that HTH has a P/B ratio of 0.95. 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. This company's current P/B looks solid when compared to its industry's average P/B of 1.52. Within the past 52 weeks, HTH's P/B has been as high as 1.19 and as low as 0.80, with a median of 0.94.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. 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 1.2. This compares to its industry's average P/S of 2.88.

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


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