Are Investors Undervaluing Heritage Insurance (HRTG) 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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One stock to keep an eye on is Heritage Insurance (HRTG). HRTG is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 13.72 right now. For comparison, its industry sports an average P/E of 22.45. Over the past year, HRTG's Forward P/E has been as high as 321.55 and as low as -214.71, with a median of -3.85.
We should also highlight that HRTG has a P/B ratio of 0.61. 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. This stock's P/B looks attractive against its industry's average P/B of 1.40. HRTG's P/B has been as high as 0.75 and as low as 0.25, with a median of 0.40, over the past year.
These are just a handful of the figures considered in Heritage Insurance'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 HRTG is an impressive value stock right now.
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Heritage Insurance Holdings, Inc. (HRTG) : Free Stock Analysis Report
