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Is MGIC Investment (MTG) Stock Undervalued Right Now?
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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 to watch right now is MGIC Investment (MTG - Free Report) . MTG is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 5.64 right now. For comparison, its industry sports an average P/E of 10.06. Over the last 12 months, MTG's Forward P/E has been as high as 8.56 and as low as 5.06, with a median of 6.11.
MTG is also sporting a PEG ratio of 1.13. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. MTG's PEG compares to its industry's average PEG of 1.66. Within the past year, MTG's PEG has been as high as 1.71 and as low as 1.01, with a median of 1.22.
Finally, investors will want to recognize that MTG has a P/CF ratio of 4.38. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 10.78. Over the past year, MTG's P/CF has been as high as 7.99 and as low as 4.20, with a median of 5.74.
Another great Insurance - Multi line stock you could consider is Radian Group (RDN - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
Shares of Radian Group currently holds a Forward P/E ratio of 5.96, and its PEG ratio is 1.19. In comparison, its industry sports average P/E and PEG ratios of 10.06 and 1.66.
RDN's Forward P/E has been as high as 7.75 and as low as 5.53, with a median of 6.40. During the same time period, its PEG ratio has been as high as 1.55, as low as 1.11, with a median of 1.28.
Radian Group sports a P/B ratio of 0.82 as well; this compares to its industry's price-to-book ratio of 3.04. In the past 52 weeks, RDN's P/B has been as high as 1.04, as low as 0.76, with a median of 0.91.
These figures are just a handful of the metrics value investors tend to look at, but they help show that MGIC Investment and Radian Group are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, MTG and RDN feels like a great value stock at the moment.
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Is MGIC Investment (MTG) Stock Undervalued Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 to watch right now is MGIC Investment (MTG - Free Report) . MTG is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 5.64 right now. For comparison, its industry sports an average P/E of 10.06. Over the last 12 months, MTG's Forward P/E has been as high as 8.56 and as low as 5.06, with a median of 6.11.
MTG is also sporting a PEG ratio of 1.13. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. MTG's PEG compares to its industry's average PEG of 1.66. Within the past year, MTG's PEG has been as high as 1.71 and as low as 1.01, with a median of 1.22.
Finally, investors will want to recognize that MTG has a P/CF ratio of 4.38. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 10.78. Over the past year, MTG's P/CF has been as high as 7.99 and as low as 4.20, with a median of 5.74.
Another great Insurance - Multi line stock you could consider is Radian Group (RDN - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
Shares of Radian Group currently holds a Forward P/E ratio of 5.96, and its PEG ratio is 1.19. In comparison, its industry sports average P/E and PEG ratios of 10.06 and 1.66.
RDN's Forward P/E has been as high as 7.75 and as low as 5.53, with a median of 6.40. During the same time period, its PEG ratio has been as high as 1.55, as low as 1.11, with a median of 1.28.
Radian Group sports a P/B ratio of 0.82 as well; this compares to its industry's price-to-book ratio of 3.04. In the past 52 weeks, RDN's P/B has been as high as 1.04, as low as 0.76, with a median of 0.91.
These figures are just a handful of the metrics value investors tend to look at, but they help show that MGIC Investment and Radian Group are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, MTG and RDN feels like a great value stock at the moment.