Should Value Investors Buy Heritage Insurance (HRTG) Stock?
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, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
Heritage Insurance (HRTG) is a stock many investors are watching right now. HRTG is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 12.08. This compares to its industry's average Forward P/E of 23.45. 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 0.58. The P/B ratio is used to compare a stock's market value with 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 1.46. 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 only a few of the key metrics included in Heritage Insurance'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, HRTG looks like an impressive value stock at the moment.
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Heritage Insurance Holdings, Inc. (HRTG) : Free Stock Analysis Report
