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Are Investors Undervaluing Home Bancorp (HBCP) 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.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company to watch right now is Home Bancorp (HBCP - Free Report) . HBCP is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 10.25. This compares to its industry's average Forward P/E of 11.42. HBCP's Forward P/E has been as high as 10.78 and as low as 7.79, with a median of 8.94, all within the past year.
Another notable valuation metric for HBCP is its P/B ratio of 0.97. 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 2.03. Within the past 52 weeks, HBCP's P/B has been as high as 1.02 and as low as 0.74, with a median of 0.83.
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. HBCP has a P/S ratio of 1.82. This compares to its industry's average P/S of 1.96.
Finally, we should also recognize that HBCP has a P/CF ratio of 8.16. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 17.69. Within the past 12 months, HBCP's P/CF has been as high as 8.30 and as low as 5.05, with a median of 6.36.
These are just a handful of the figures considered in Home Bancorp'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 HBCP is an impressive value stock right now.
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Are Investors Undervaluing Home Bancorp (HBCP) Right Now?
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.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company to watch right now is Home Bancorp (HBCP - Free Report) . HBCP is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 10.25. This compares to its industry's average Forward P/E of 11.42. HBCP's Forward P/E has been as high as 10.78 and as low as 7.79, with a median of 8.94, all within the past year.
Another notable valuation metric for HBCP is its P/B ratio of 0.97. 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 2.03. Within the past 52 weeks, HBCP's P/B has been as high as 1.02 and as low as 0.74, with a median of 0.83.
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. HBCP has a P/S ratio of 1.82. This compares to its industry's average P/S of 1.96.
Finally, we should also recognize that HBCP has a P/CF ratio of 8.16. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 17.69. Within the past 12 months, HBCP's P/CF has been as high as 8.30 and as low as 5.05, with a median of 6.36.
These are just a handful of the figures considered in Home Bancorp'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 HBCP is an impressive value stock right now.