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Should Value Investors Buy These Finance Stocks?

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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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One company to watch right now is MS&AD Insurance Group (MSADY - Free Report) . MSADY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.

Another notable valuation metric for MSADY is its P/B ratio of 0.59. 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. MSADY's current P/B looks attractive when compared to its industry's average P/B of 1.26. MSADY's P/B has been as high as 0.70 and as low as 0.57, with a median of 0.62, over the past year.

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 popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. MSADY has a P/S ratio of 0.4. This compares to its industry's average P/S of 1.03.

Universal Insurance Holdings (UVE - Free Report) may be another strong Insurance - Property and Casualty stock to add to your shortlist. UVE is a # 2 (Buy) stock with a Value grade of A.

Additionally, Universal Insurance Holdings has a P/B ratio of 0.99 while its industry's price-to-book ratio sits at 1.26. For UVE, this valuation metric has been as high as 1.15, as low as 0.82, with a median of 0.96 over the past year.

These are just a handful of the figures considered in MS&AD Insurance Group and Universal Insurance Holdings'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 MSADY and UVE is an impressive value stock right now.


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UNIVERSAL INSURANCE HOLDINGS INC (UVE) - free report >>

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