We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Are Investors Undervaluing Essent Group (ESNT) Right Now?
Read MoreHide Full Article
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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 company value investors might notice is Essent Group (ESNT - Free Report) . ESNT is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 7.09, while its industry has an average P/E of 7.83. Over the last 12 months, ESNT's Forward P/E has been as high as 9.68 and as low as 6.50, with a median of 7.93.
We also note that ESNT holds a PEG ratio of 0.71. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. ESNT's PEG compares to its industry's average PEG of 0.82. Over the past 52 weeks, ESNT's PEG has been as high as 0.97 and as low as 0.65, with a median of 0.79.
Another notable valuation metric for ESNT is its P/B ratio of 1.22. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. ESNT's current P/B looks attractive when compared to its industry's average P/B of 1.69. Over the past 12 months, ESNT's P/B has been as high as 1.54 and as low as 1.12, with a median of 1.27.
Finally, we should also recognize that ESNT has a P/CF ratio of 7.81. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. ESNT's current P/CF looks attractive when compared to its industry's average P/CF of 14.46. Within the past 12 months, ESNT's P/CF has been as high as 14.08 and as low as 7.03, with a median of 8.87.
These are only a few of the key metrics included in Essent Group's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, ESNT looks like an impressive value stock at the moment.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Are Investors Undervaluing Essent Group (ESNT) Right Now?
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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 company value investors might notice is Essent Group (ESNT - Free Report) . ESNT is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 7.09, while its industry has an average P/E of 7.83. Over the last 12 months, ESNT's Forward P/E has been as high as 9.68 and as low as 6.50, with a median of 7.93.
We also note that ESNT holds a PEG ratio of 0.71. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. ESNT's PEG compares to its industry's average PEG of 0.82. Over the past 52 weeks, ESNT's PEG has been as high as 0.97 and as low as 0.65, with a median of 0.79.
Another notable valuation metric for ESNT is its P/B ratio of 1.22. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. ESNT's current P/B looks attractive when compared to its industry's average P/B of 1.69. Over the past 12 months, ESNT's P/B has been as high as 1.54 and as low as 1.12, with a median of 1.27.
Finally, we should also recognize that ESNT has a P/CF ratio of 7.81. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. ESNT's current P/CF looks attractive when compared to its industry's average P/CF of 14.46. Within the past 12 months, ESNT's P/CF has been as high as 14.08 and as low as 7.03, with a median of 8.87.
These are only a few of the key metrics included in Essent Group's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, ESNT looks like an impressive value stock at the moment.