Are These Finance Stocks a Great Value Stocks Right Now?

ACGL DGICA

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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of 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.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One stock to keep an eye on is Arch Capital Group (ACGL - Free Report) . ACGL is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 13.61 right now. For comparison, its industry sports an average P/E of 29.76. ACGL's Forward P/E has been as high as 13.61 and as low as 9.53, with a median of 10.78, all within the past year.

ACGL is also sporting a PEG ratio of 1.36. 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. ACGL's PEG compares to its industry's average PEG of 3.42. ACGL's PEG has been as high as 1.36 and as low as 0.95, with a median of 1.08, all within the past year.

Donegal Group (DGICA - Free Report) may be another strong Insurance - Property and Casualty stock to add to your shortlist. DGICA is a # 2 (Buy) stock with a Value grade of A.

Donegal Group sports a P/B ratio of 0.83 as well; this compares to its industry's price-to-book ratio of 1.33. In the past 52 weeks, DGICA's P/B has been as high as 0.95, as low as 0.79, with a median of 0.85.

These are only a few of the key metrics included in Arch Capital Group and Donegal Group strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, ACGL and DGICA look like an impressive value stock at the moment.

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