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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 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 company value investors might notice is Cigna (CI - Free Report) . CI is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.
We also note that CI holds a PEG ratio of 1. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. CI's industry currently sports an average PEG of 1.53. Over the last 12 months, CI's PEG has been as high as 1.09 and as low as 0.78, with a median of 0.92.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. CI has a P/S ratio of 0.47. This compares to its industry's average P/S of 0.74.
Investors could also keep in mind MGIC Investment (MTG - Free Report) , an Insurance - Multi line stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
MGIC Investment is trading at a forward earnings multiple of 5.88 at the moment, with a PEG ratio of 1.18. This compares to its industry's average P/E of 10.08 and average PEG ratio of 1.53.
MTG's Forward P/E has been as high as 8.56 and as low as 5.88, with a median of 7.70. During the same time period, its PEG ratio has been as high as 1.71, as low as 1.18, with a median of 1.54.
MGIC Investment sports a P/B ratio of 0.87 as well; this compares to its industry's price-to-book ratio of 1.52. In the past 52 weeks, MTG's P/B has been as high as 1.11, as low as 0.87, with a median of 1.01.
Value investors will likely look at more than just these metrics, but the above data helps show that Cigna and MGIC Investment are likely undervalued currently. And when considering the strength of its earnings outlook, CI and MTG sticks out as one of the market's strongest value stocks.
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Is Cigna (CI) Stock Undervalued Right Now?
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 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 company value investors might notice is Cigna (CI - Free Report) . CI is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.
We also note that CI holds a PEG ratio of 1. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. CI's industry currently sports an average PEG of 1.53. Over the last 12 months, CI's PEG has been as high as 1.09 and as low as 0.78, with a median of 0.92.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. CI has a P/S ratio of 0.47. This compares to its industry's average P/S of 0.74.
Investors could also keep in mind MGIC Investment (MTG - Free Report) , an Insurance - Multi line stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
MGIC Investment is trading at a forward earnings multiple of 5.88 at the moment, with a PEG ratio of 1.18. This compares to its industry's average P/E of 10.08 and average PEG ratio of 1.53.
MTG's Forward P/E has been as high as 8.56 and as low as 5.88, with a median of 7.70. During the same time period, its PEG ratio has been as high as 1.71, as low as 1.18, with a median of 1.54.
MGIC Investment sports a P/B ratio of 0.87 as well; this compares to its industry's price-to-book ratio of 1.52. In the past 52 weeks, MTG's P/B has been as high as 1.11, as low as 0.87, with a median of 1.01.
Value investors will likely look at more than just these metrics, but the above data helps show that Cigna and MGIC Investment are likely undervalued currently. And when considering the strength of its earnings outlook, CI and MTG sticks out as one of the market's strongest value stocks.