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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 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.
Everest Re Group is a stock many investors are watching right now. RE is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.
We should also highlight that RE has a P/B ratio of 1.15. 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. This stock's P/B looks solid versus its industry's average P/B of 1.40. RE's P/B has been as high as 1.43 and as low as 0.96, with a median of 1.14, over the past year.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by 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. RE has a P/S ratio of 0.98. This compares to its industry's average P/S of 1.08.
If you're looking for another solid Insurance - Property and Casualty value stock, take a look at Selective Insurance Group (SIGI - Free Report) . SIGI is a # 2 (Buy) stock with a Value score of A.
Selective Insurance Group is currently trading with a Forward P/E ratio of 13.18 while its PEG ratio sits at 1.23. Both of the company's metrics compare favorably to its industry's average P/E of 30.65 and average PEG ratio of 3.47.
Over the last 12 months, SIGI's P/E has been as high as 16.92, as low as 12.59, with a median of 14.50, and its PEG ratio has been as high as 1.64, as low as 0.94, with a median of 1.15.
Furthermore, Selective Insurance Group holds a P/B ratio of 1.66 and its industry's price-to-book ratio is 1.40. SIGI's P/B has been as high as 1.91, as low as 1.56, with a median of 1.77 over the past 12 months.
Value investors will likely look at more than just these metrics, but the above data helps show that Everest Re Group and Selective Insurance Group are likely undervalued currently. And when considering the strength of its earnings outlook, RE and SIGI sticks out as one of the market's strongest value stocks.
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Are These Finance Stocks Undervalued 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 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.
Everest Re Group is a stock many investors are watching right now. RE is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.
We should also highlight that RE has a P/B ratio of 1.15. 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. This stock's P/B looks solid versus its industry's average P/B of 1.40. RE's P/B has been as high as 1.43 and as low as 0.96, with a median of 1.14, over the past year.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by 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. RE has a P/S ratio of 0.98. This compares to its industry's average P/S of 1.08.
If you're looking for another solid Insurance - Property and Casualty value stock, take a look at Selective Insurance Group (SIGI - Free Report) . SIGI is a # 2 (Buy) stock with a Value score of A.
Selective Insurance Group is currently trading with a Forward P/E ratio of 13.18 while its PEG ratio sits at 1.23. Both of the company's metrics compare favorably to its industry's average P/E of 30.65 and average PEG ratio of 3.47.
Over the last 12 months, SIGI's P/E has been as high as 16.92, as low as 12.59, with a median of 14.50, and its PEG ratio has been as high as 1.64, as low as 0.94, with a median of 1.15.
Furthermore, Selective Insurance Group holds a P/B ratio of 1.66 and its industry's price-to-book ratio is 1.40. SIGI's P/B has been as high as 1.91, as low as 1.56, with a median of 1.77 over the past 12 months.
Value investors will likely look at more than just these metrics, but the above data helps show that Everest Re Group and Selective Insurance Group are likely undervalued currently. And when considering the strength of its earnings outlook, RE and SIGI sticks out as one of the market's strongest value stocks.