Yahoo Finance Are Investors Undervaluing Home Bancorp (HBCP) Right Now?
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company to watch right now is Home Bancorp (HBCP). HBCP is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 8.86, while its industry has an average P/E of 9.76. HBCP's Forward P/E has been as high as 10.78 and as low as 6.07, with a median of 8.42, all within the past year.
Another notable valuation metric for HBCP is its P/B ratio of 0.80. 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 stock's P/B looks solid versus its industry's average P/B of 1.62. HBCP's P/B has been as high as 1.02 and as low as 0.68, with a median of 0.80, over the past year.
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 prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. HBCP has a P/S ratio of 1.55. This compares to its industry's average P/S of 1.73.
Finally, investors should note that HBCP has a P/CF ratio of 6.31. 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. HBCP's current P/CF looks attractive when compared to its industry's average P/CF of 11.98. Over the past 52 weeks, HBCP's P/CF has been as high as 7.15 and as low as 4.62, with a median of 5.66.
Value investors will likely look at more than just these metrics, but the above data helps show that Home Bancorp is likely undervalued currently. And when considering the strength of its earnings outlook, HBCP sticks out at as one of the market's strongest value stocks.
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Home Bancorp, Inc. (HBCP) : Free Stock Analysis Report
