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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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 stock to keep an eye on is CNA Financial (CNA - Free Report) . CNA is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value.
Investors will also notice that CNA has a PEG ratio of 1.76. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. CNA's PEG compares to its industry's average PEG of 2.89. Over the last 12 months, CNA's PEG has been as high as 2.33 and as low as 1.67, with a median of 1.80.
Investors should also recognize that CNA has a P/B ratio of 1.34. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 1.46. Over the past 12 months, CNA's P/B has been as high as 1.42 and as low as 1.13, with a median of 1.25.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. CNA has a P/S ratio of 0.89. This compares to its industry's average P/S of 1.09.
If you're looking for another solid Insurance - Property and Casualty value stock, take a look at RenaissanceRe (RNR - Free Report) . RNR is a # 2 (Buy) stock with a Value score of A.
Additionally, RenaissanceRe has a P/B ratio of 1.46 while its industry's price-to-book ratio sits at 1.46. For RNR, this valuation metric has been as high as 2.12, as low as 1.36, with a median of 1.62 over the past year.
These are only a few of the key metrics included in CNA Financial and RenaissanceRe strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, CNA and RNR look like an impressive value stock at the moment.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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 stock to keep an eye on is CNA Financial (CNA - Free Report) . CNA is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value.
Investors will also notice that CNA has a PEG ratio of 1.76. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. CNA's PEG compares to its industry's average PEG of 2.89. Over the last 12 months, CNA's PEG has been as high as 2.33 and as low as 1.67, with a median of 1.80.
Investors should also recognize that CNA has a P/B ratio of 1.34. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 1.46. Over the past 12 months, CNA's P/B has been as high as 1.42 and as low as 1.13, with a median of 1.25.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. CNA has a P/S ratio of 0.89. This compares to its industry's average P/S of 1.09.
If you're looking for another solid Insurance - Property and Casualty value stock, take a look at RenaissanceRe (RNR - Free Report) . RNR is a # 2 (Buy) stock with a Value score of A.
Additionally, RenaissanceRe has a P/B ratio of 1.46 while its industry's price-to-book ratio sits at 1.46. For RNR, this valuation metric has been as high as 2.12, as low as 1.36, with a median of 1.62 over the past year.
These are only a few of the key metrics included in CNA Financial and RenaissanceRe strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, CNA and RNR look like an impressive value stock at the moment.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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