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Are Investors Undervaluing These Finance Stocks Right Now?
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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader 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.
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 to watch right now is American Financial Group (AFG - Free Report) . AFG is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 14.13 right now. For comparison, its industry sports an average P/E of 30.66. AFG's Forward P/E has been as high as 1,155.88 and as low as 12.96, with a median of 15.62, all within the past year.
Finally, we should also recognize that AFG has a P/CF ratio of 4.58. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 5.82. AFG's P/CF has been as high as 10.02 and as low as 3.91, with a median of 4.61, all within the past year.
Another great Insurance - Property and Casualty stock you could consider is First American Financial (FAF - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
First American Financial sports a P/B ratio of 1.38 as well; this compares to its industry's price-to-book ratio of 1.40. In the past 52 weeks, FAF's P/B has been as high as 1.58, as low as 1.16, with a median of 1.42.
Value investors will likely look at more than just these metrics, but the above data helps show that American Financial Group and First American Financial are likely undervalued currently. And when considering the strength of its earnings outlook, AFG and FAF sticks out as one of the market's strongest value stocks.
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Are Investors Undervaluing These Finance Stocks Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader 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.
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 to watch right now is American Financial Group (AFG - Free Report) . AFG is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 14.13 right now. For comparison, its industry sports an average P/E of 30.66. AFG's Forward P/E has been as high as 1,155.88 and as low as 12.96, with a median of 15.62, all within the past year.
Finally, we should also recognize that AFG has a P/CF ratio of 4.58. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 5.82. AFG's P/CF has been as high as 10.02 and as low as 3.91, with a median of 4.61, all within the past year.
Another great Insurance - Property and Casualty stock you could consider is First American Financial (FAF - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
First American Financial sports a P/B ratio of 1.38 as well; this compares to its industry's price-to-book ratio of 1.40. In the past 52 weeks, FAF's P/B has been as high as 1.58, as low as 1.16, with a median of 1.42.
Value investors will likely look at more than just these metrics, but the above data helps show that American Financial Group and First American Financial are likely undervalued currently. And when considering the strength of its earnings outlook, AFG and FAF sticks out as one of the market's strongest value stocks.