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 use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 company value investors might notice is Axis Capital Holdings (AXS - Free Report) . AXS is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.
AXS is also sporting a PEG ratio of 1.33. 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. AXS's PEG compares to its industry's average PEG of 2.47. Over the last 12 months, AXS's PEG has been as high as 2 and as low as 1.28, with a median of 1.55.
We should also highlight that AXS has a P/B ratio of 1.04. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. AXS's current P/B looks attractive when compared to its industry's average P/B of 1.41. Over the past 12 months, AXS's P/B has been as high as 1.31 and as low as 0.99, with a median of 1.11.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. AXS has a P/S ratio of 0.87. This compares to its industry's average P/S of 0.88.
Finally, investors will want to recognize that AXS has a P/CF ratio of 13.84. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 36.58. Over the past year, AXS's P/CF has been as high as 17.12 and as low as 6.10, with a median of 9.81.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Axis Capital Holdings is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, AXS feels like a great value stock at the moment.
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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 use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 company value investors might notice is Axis Capital Holdings (AXS - Free Report) . AXS is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.
AXS is also sporting a PEG ratio of 1.33. 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. AXS's PEG compares to its industry's average PEG of 2.47. Over the last 12 months, AXS's PEG has been as high as 2 and as low as 1.28, with a median of 1.55.
We should also highlight that AXS has a P/B ratio of 1.04. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. AXS's current P/B looks attractive when compared to its industry's average P/B of 1.41. Over the past 12 months, AXS's P/B has been as high as 1.31 and as low as 0.99, with a median of 1.11.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. AXS has a P/S ratio of 0.87. This compares to its industry's average P/S of 0.88.
Finally, investors will want to recognize that AXS has a P/CF ratio of 13.84. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 36.58. Over the past year, AXS's P/CF has been as high as 17.12 and as low as 6.10, with a median of 9.81.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Axis Capital Holdings is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, AXS feels like a great value stock at the moment.
Top 5 Dividend Stocks for Your Retirement
Zacks targets 5 well-established companies with solid fundamentals and a history of raising dividends. More importantly, they have the resources and will to likely pay them in the future.
Click now for a Special Report packed with unconventional wisdom and insights you simply won’t get from your neighborhood financial planner.
See our Top 5 now – the report is FREE >>
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