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Are Investors Undervaluing These Finance Stocks Right Now?
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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find 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 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 Donegal Group (DGICA - Free Report) . DGICA is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 12.72 right now. For comparison, its industry sports an average P/E of 28.35. Over the past 52 weeks, DGICA's Forward P/E has been as high as 17.63 and as low as 12.61, with a median of 15.22.
Investors should also recognize that DGICA has a P/B ratio of 0.82. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. DGICA's current P/B looks attractive when compared to its industry's average P/B of 1.25. Over the past 12 months, DGICA's P/B has been as high as 0.95 and as low as 0.79, with a median of 0.85.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's 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. DGICA has a P/S ratio of 0.55. This compares to its industry's average P/S of 1.02.
MS&AD Insurance Group (MSADY - Free Report) may be another strong Insurance - Property and Casualty stock to add to your shortlist. MSADY is a # 2 (Buy) stock with a Value grade of A.
MS&AD Insurance Group also has a P/B ratio of 0.60 compared to its industry's price-to-book ratio of 1.25. Over the past year, its P/B ratio has been as high as 0.73, as low as 0.57, with a median of 0.62.
These are only a few of the key metrics included in Donegal Group and MS&AD Insurance 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, DGICA and MSADY look like an impressive value stock at the moment.
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Are Investors Undervaluing These Finance Stocks Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find 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 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 Donegal Group (DGICA - Free Report) . DGICA is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 12.72 right now. For comparison, its industry sports an average P/E of 28.35. Over the past 52 weeks, DGICA's Forward P/E has been as high as 17.63 and as low as 12.61, with a median of 15.22.
Investors should also recognize that DGICA has a P/B ratio of 0.82. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. DGICA's current P/B looks attractive when compared to its industry's average P/B of 1.25. Over the past 12 months, DGICA's P/B has been as high as 0.95 and as low as 0.79, with a median of 0.85.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's 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. DGICA has a P/S ratio of 0.55. This compares to its industry's average P/S of 1.02.
MS&AD Insurance Group (MSADY - Free Report) may be another strong Insurance - Property and Casualty stock to add to your shortlist. MSADY is a # 2 (Buy) stock with a Value grade of A.
MS&AD Insurance Group also has a P/B ratio of 0.60 compared to its industry's price-to-book ratio of 1.25. Over the past year, its P/B ratio has been as high as 0.73, as low as 0.57, with a median of 0.62.
These are only a few of the key metrics included in Donegal Group and MS&AD Insurance 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, DGICA and MSADY look like an impressive value stock at the moment.