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Is Hilltop Holdings (HTH) a Great Value Stock 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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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 P/E ratio of 10.52 right now. For comparison, its industry sports an average P/E of 13.01. Over the last 12 months, HTH's Forward P/E has been as high as 13.70 and as low as 6.38, with a median of 12.16.

We should also highlight that HTH has a P/B ratio of 0.82. 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 company's current P/B looks solid when compared to its industry's average P/B of 1.65. Within the past 52 weeks, HTH's P/B has been as high as 1.15 and as low as 0.50, with a median of 1.01.

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 0.87. This compares to its industry's average P/S of 1.87.

Finally, investors will want to recognize that HTH has a P/CF ratio of 7.73. 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. 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 15.35 and as low as 4.74, with a median of 11.52, 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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