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Is Heartland Financial (HTLF) a Great Value Stock Right Now?

Zacks Equity Research
·3 mins read

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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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 stock to keep an eye on is Heartland Financial (HTLF). HTLF is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 9.45, while its industry has an average P/E of 12.39. HTLF's Forward P/E has been as high as 13.80 and as low as 6.84, with a median of 11.71, all within the past year.

Investors will also notice that HTLF has a PEG ratio of 1.07. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. HTLF's PEG compares to its industry's average PEG of 2.13. Within the past year, HTLF's PEG has been as high as 1.12 and as low as 1.07, with a median of 1.10.

Another notable valuation metric for HTLF is its P/B ratio of 0.67. 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. HTLF's current P/B looks attractive when compared to its industry's average P/B of 1.41. Over the past year, HTLF's P/B has been as high as 1.20 and as low as 0.61, with a median of 0.80.

Finally, investors will want to recognize that HTLF has a P/CF ratio of 6.57. 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. HTLF's P/CF compares to its industry's average P/CF of 13.36. Over the past 52 weeks, HTLF's P/CF has been as high as 9.48 and as low as 4.85, with a median of 7.53.

These are only a few of the key metrics included in Heartland Financial's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, HTLF looks like an impressive value stock at the moment.


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Zacks Investment Research