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Are Investors Undervaluing Reinsurance Group of America (RGA) Right Now?
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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 to watch right now is Reinsurance Group of America (RGA - Free Report) . RGA is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.
We should also highlight that RGA has a P/B ratio of 1.31. 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 company's current P/B looks solid when compared to its industry's average P/B of 1.65. Within the past 52 weeks, RGA's P/B has been as high as 2.61 and as low as 1.14, with a median of 1.24.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. RGA has a P/S ratio of 0.6. This compares to its industry's average P/S of 1.01.
Finally, our model also underscores that RGA has a P/CF ratio of 9.75. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 9.76. Over the past 52 weeks, RGA's P/CF has been as high as 26.37 and as low as 8.57, with a median of 14.55.
Value investors will likely look at more than just these metrics, but the above data helps show that Reinsurance Group of America is likely undervalued currently. And when considering the strength of its earnings outlook, RGA sticks out at as one of the market's strongest value stocks.
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Are Investors Undervaluing Reinsurance Group of America (RGA) 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 to watch right now is Reinsurance Group of America (RGA - Free Report) . RGA is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.
We should also highlight that RGA has a P/B ratio of 1.31. 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 company's current P/B looks solid when compared to its industry's average P/B of 1.65. Within the past 52 weeks, RGA's P/B has been as high as 2.61 and as low as 1.14, with a median of 1.24.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. RGA has a P/S ratio of 0.6. This compares to its industry's average P/S of 1.01.
Finally, our model also underscores that RGA has a P/CF ratio of 9.75. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 9.76. Over the past 52 weeks, RGA's P/CF has been as high as 26.37 and as low as 8.57, with a median of 14.55.
Value investors will likely look at more than just these metrics, but the above data helps show that Reinsurance Group of America is likely undervalued currently. And when considering the strength of its earnings outlook, RGA sticks out at as one of the market's strongest value stocks.