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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.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One company value investors might notice is Markel (MKL - Free Report) . MKL is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 16.67, while its industry has an average P/E of 28.79. MKL's Forward P/E has been as high as 20.79 and as low as 16.04, with a median of 19.06, all within the past year.

Another notable valuation metric for MKL is its P/B ratio of 1.26. 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. This company's current P/B looks solid when compared to its industry's average P/B of 1.28. Over the past 12 months, MKL's P/B has been as high as 1.36 and as low as 1.06, with a median of 1.28.

If you're looking for another solid Insurance - Property and Casualty value stock, take a look at Universal Insurance Holdings (UVE - Free Report) . UVE is a # 2 (Buy) stock with a Value score of A.

Furthermore, Universal Insurance Holdings holds a P/B ratio of 0.99 and its industry's price-to-book ratio is 1.28. UVE's P/B has been as high as 1.15, as low as 0.82, with a median of 0.96 over the past 12 months.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Markel and Universal Insurance Holdings are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, MKL and UVE feels like a great value stock at the moment.


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Markel Group Inc. (MKL) - free report >>

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

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