Is It Time To Buy The Hartford Financial Services Group Inc (NYSE:HIG)?
Today we’re going to take a look at the well-established The Hartford Financial Services Group Inc (NYSE:HIG). The company’s stock saw significant share price volatility over the past couple of months on the NYSE, rising to the highs of $56.13 and falling to the lows of $50.29. This high level of volatility gives investors the opportunity to enter into the stock, and potentially buy at an artificially low price. A question to answer is whether Hartford Financial Services Group’s current trading price of $53.27 reflective of the actual value of the large-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Hartford Financial Services Group’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 Hartford Financial Services Group
Is Hartford Financial Services Group still cheap?
According to my valuation model, Hartford Financial Services Group seems to be fairly priced at around 12.24% below my intrinsic value, which means if you buy Hartford Financial Services Group today, you’d be paying a fair price for it. And if you believe the company’s true value is $60.7, then there isn’t much room for the share price grow beyond what it’s currently trading. In addition to this, it seems like Hartford Financial Services Group’s share price is quite stable, which could mean there may be less chances to buy low in the future now that it’s fairly valued. This is because the stock is less volatile than the wider market given its low beta.
What kind of growth will Hartford Financial Services Group generate?
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. Hartford Financial Services Group’s revenue growth are expected to be in the teens in the upcoming years, indicating a solid future ahead. Unless expenses grow at the same level, or higher, this top-line growth should lead to robust cash flows, feeding into a higher share value.
What this means for you:
Are you a shareholder? HIG’s optimistic future growth appears to have been factored into the current share price, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the financial strength of the company. Have these factors changed since the last time you looked at the stock? Will you have enough conviction to buy should the price fluctuates below the true value?
Are you a potential investor? If you’ve been keeping tabs on HIG, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the positive outlook is encouraging for the company, which means it’s worth further examining other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Hartford Financial Services Group. You can find everything you need to know about Hartford Financial Services Group in the latest infographic research report. If you are no longer interested in Hartford Financial Services Group, you can use our free platform to see my list of over 50 other stocks with a high growth potential.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.
