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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.

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 use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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 sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 12.28 right now. For comparison, its industry sports an average P/E of 13.02. Over the last 12 months, HTH's Forward P/E has been as high as 13.70 and as low as 9.98, with a median of 12.26.

Investors should also recognize that HTH has a P/B ratio of 1.07. 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 attractive against its industry's average P/B of 1.65. Over the past 12 months, HTH's P/B has been as high as 1.15 and as low as 0.82, with a median of 0.98.

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 prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. HTH has a P/S ratio of 1.26. This compares to its industry's average P/S of 2.87.

Finally, our model also underscores that HTH has a P/CF ratio of 11.44. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 13.42. HTH's P/CF has been as high as 15.75 and as low as 10.85, with a median of 13.93, all within the past year.

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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