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Is Radian (RDN) a Great Value Stock Right Now?

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

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 company value investors might notice is Radian (RDN - Free Report) . RDN is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 7.49, while its industry has an average P/E of 7.70. RDN's Forward P/E has been as high as 8.32 and as low as 3.29, with a median of 7.01, all within the past year.

Investors should also recognize that RDN has a P/B ratio of 0.88. 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 solid versus its industry's average P/B of 1.02. Within the past 52 weeks, RDN's P/B has been as high as 1.36 and as low as 0.49, with a median of 0.81.

Value investors will likely look at more than just these metrics, but the above data helps show that Radian is likely undervalued currently. And when considering the strength of its earnings outlook, RDN sticks out at as one of the market's strongest value stocks.


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