Are Investors Undervaluing Assurant (AIZ) Right Now?

CNO AIZ

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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 Assurant (AIZ - Free Report) . AIZ is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.

Another notable valuation metric for AIZ is its P/B ratio of 1.94. 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 stock's P/B looks attractive against its industry's average P/B of 2.73. AIZ's P/B has been as high as 2.01 and as low as 1.31, with a median of 1.66, over the past year.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. AIZ has a P/S ratio of 0.83. This compares to its industry's average P/S of 1.01.

CNO Financial Group (CNO - Free Report) may be another strong Insurance - Multi line stock to add to your shortlist. CNO is a # 2 (Buy) stock with a Value grade of A.

Furthermore, CNO Financial Group holds a P/B ratio of 1.36 and its industry's price-to-book ratio is 2.73. CNO's P/B has been as high as 2.12, as low as 1.15, with a median of 1.37 over the past 12 months.

These are just a handful of the figures considered in Assurant and CNO Financial Group's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that AIZ and CNO is an impressive value stock right now.

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