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Is Now The Time To Look At Buying Heartland Financial USA, Inc. (NASDAQ:HTLF)?

Simply Wall St

Heartland Financial USA, Inc. (NASDAQ:HTLF), operating in the financial services industry based in United States, received a lot of attention from a substantial price movement on the NASDAQGS over the last few months, increasing to $48.25 at one point, and dropping to the lows of $41.2. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Heartland Financial USA's current trading price of $42.11 reflective of the actual value of the small-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Heartland Financial USA’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

Check out our latest analysis for Heartland Financial USA

Is Heartland Financial USA still cheap?

Great news for investors – Heartland Financial USA is still trading at a fairly cheap price. My valuation model shows that the intrinsic value for the stock is $62.98, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. Another thing to keep in mind is that Heartland Financial USA’s share price may be quite stable relative to the rest of the market, as indicated by its low beta. This means that if you believe the current share price should move towards its intrinsic value over time, a low beta could suggest it is not likely to reach that level anytime soon, and once it’s there, it may be hard to fall back down into an attractive buying range again.

What does the future of Heartland Financial USA look like?

NasdaqGS:HTLF Past and Future Earnings, August 26th 2019
NasdaqGS:HTLF Past and Future Earnings, August 26th 2019

Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. However, with a relatively muted profit growth of 4.0% expected over the next year, growth doesn’t seem like a key driver for a buy decision for Heartland Financial USA, at least in the short term.

What this means for you:

Are you a shareholder? Even though growth is relatively muted, since HTLF is currently undervalued, it may be a great time to increase your holdings in the stock. However, there are also other factors such as financial health to consider, which could explain the current undervaluation.

Are you a potential investor? If you’ve been keeping an eye on HTLF for a while, now might be the time to make a leap. Its future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy HTLF. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed investment decision.

Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Heartland Financial USA. You can find everything you need to know about Heartland Financial USA in the latest infographic research report. If you are no longer interested in Heartland Financial USA, you can use our free platform to see my list of over 50 other stocks with a high growth potential.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.