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Is HomeTrust Bancshares (HTBI) Stock Undervalued 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.

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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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 HomeTrust Bancshares (HTBI). HTBI is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 9.50, while its industry has an average P/E of 9.56. HTBI's Forward P/E has been as high as 17.95 and as low as 9.50, with a median of 14.18, all within the past year.

Investors should also recognize that HTBI has a P/B ratio of 0.94. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 1.87. Within the past 52 weeks, HTBI's P/B has been as high as 1.32 and as low as 0.92, with a median of 1.20.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. HTBI has a P/S ratio of 2.38. This compares to its industry's average P/S of 3.02.

Finally, investors should note that HTBI has a P/CF ratio of 7.67. 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. HTBI's current P/CF looks attractive when compared to its industry's average P/CF of 12.05. Over the past 52 weeks, HTBI's P/CF has been as high as 18.21 and as low as 7.46, with a median of 14.46.

Value investors will likely look at more than just these metrics, but the above data helps show that HomeTrust Bancshares is likely undervalued currently. And when considering the strength of its earnings outlook, HTBI sticks out at as one of the market's strongest value stocks.


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