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Is Horizon Technology Finance (HRZN) A Great Value Stock Right Now?

By Zacks Investment ResearchStock MarketsMar 23, 2020 11:50PM ET
www.investing.com/analysis/is-horizon-technology-finance-hrzn-a-great-value-stock-right-now-200518657
Is Horizon Technology Finance (HRZN) A Great Value Stock Right Now?
By Zacks Investment Research   |  Mar 23, 2020 11:50PM ET
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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

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.

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.

Horizon Technology Finance (HRZN) is a stock many investors are watching right now. HRZN is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 5.34, while its industry has an average P/E of 10.40. Over the last 12 months, HRZN's Forward P/E has been as high as 10.80 and as low as 4, with a median of 9.96.

We should also highlight that HRZN has a P/B ratio of 0.56. 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 company's current P/B looks solid when compared to its industry's average P/B of 1.13. HRZN's P/B has been as high as 1.10 and as low as 0.42, with a median of 1.03, over the past year.

Finally, investors should note that HRZN has a P/CF ratio of 5.15. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 8.23. HRZN's P/CF has been as high as 10.64 and as low as 3.85, with a median of 9.95, all within the past year.

These are just a handful of the figures considered in Horizon Technology Finance'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 HRZN is an impressive value stock right now.



Horizon Technology Finance Corporation (HRZN): Free Stock Analysis Report

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Zacks Investment Research

Is Horizon Technology Finance (HRZN) A Great Value Stock Right Now?
 

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Is Horizon Technology Finance (HRZN) A Great Value Stock Right Now?

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