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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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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 stock to keep an eye on is Hilltop Holdings (HTH - Free Report) . HTH is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 12.39, which compares to its industry's average of 12.97. Over the past 52 weeks, HTH's Forward P/E has been as high as 13.70 and as low as 9.83, with a median of 12.22.

We should also highlight that HTH has a P/B ratio of 1.10. Investors use the P/B ratio to look at a stock's market value versus 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 1.65. HTH's P/B has been as high as 1.15 and as low as 0.80, with a median of 0.97, over the past year.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. HTH has a P/S ratio of 1.27. This compares to its industry's average P/S of 2.95.

Finally, we should also recognize that HTH has a P/CF ratio of 11.49. 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. HTH's current P/CF looks attractive when compared to its industry's average P/CF of 13.42. Over the past 52 weeks, HTH's P/CF has been as high as 15.75 and as low as 10.85, with a median of 14.11.

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.


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