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Should Value Investors Buy Tokio Marine (TKOMY) Stock?

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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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One stock to keep an eye on is Tokio Marine (TKOMY - Free Report) . TKOMY is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 11.85, while its industry has an average P/E of 27.51. Over the past 52 weeks, TKOMY's Forward P/E has been as high as 14.31 and as low as 11.01, with a median of 12.28.

Investors will also notice that TKOMY has a PEG ratio of 1.61. 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. TKOMY's PEG compares to its industry's average PEG of 3.13. Over the past 52 weeks, TKOMY's PEG has been as high as 2.82 and as low as 1.61, with a median of 2.65.

Another valuation metric that we should highlight is TKOMY's P/B ratio of 1.05. 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 1.44. Over the past year, TKOMY's P/B has been as high as 1.09 and as low as 0.88, with a median of 1.01.

These are only a few of the key metrics included in Tokio Marine's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, TKOMY looks like an impressive value stock at the moment.


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