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RE vs. RNR: Which Stock Should Value Investors Buy Now?
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Investors interested in stocks from the Insurance - Property and Casualty sector have probably already heard of Everest Re and RenaissanceRe (RNR - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, Everest Re is sporting a Zacks Rank of #2 (Buy), while RenaissanceRe has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that RE has an improving earnings outlook. But this is only part of the picture for value investors.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
RE currently has a forward P/E ratio of 10.45, while RNR has a forward P/E of 10.99. We also note that RE has a PEG ratio of 1.05. 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. RNR currently has a PEG ratio of 1.16.
Another notable valuation metric for RE is its P/B ratio of 1.16. 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. By comparison, RNR has a P/B of 1.24.
These are just a few of the metrics contributing to RE's Value grade of A and RNR's Value grade of C.
RE sticks out from RNR in both our Zacks Rank and Style Scores models, so value investors will likely feel that RE is the better option right now.
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RE vs. RNR: Which Stock Should Value Investors Buy Now?
Investors interested in stocks from the Insurance - Property and Casualty sector have probably already heard of Everest Re and RenaissanceRe (RNR - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, Everest Re is sporting a Zacks Rank of #2 (Buy), while RenaissanceRe has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that RE has an improving earnings outlook. But this is only part of the picture for value investors.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
RE currently has a forward P/E ratio of 10.45, while RNR has a forward P/E of 10.99. We also note that RE has a PEG ratio of 1.05. 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. RNR currently has a PEG ratio of 1.16.
Another notable valuation metric for RE is its P/B ratio of 1.16. 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. By comparison, RNR has a P/B of 1.24.
These are just a few of the metrics contributing to RE's Value grade of A and RNR's Value grade of C.
RE sticks out from RNR in both our Zacks Rank and Style Scores models, so value investors will likely feel that RE is the better option right now.