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Are Investors Undervaluing These Finance Stocks Right Now?

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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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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 Heritage Insurance (HRTG - Free Report) . HRTG is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 12.33, while its industry has an average P/E of 33.13. HRTG's Forward P/E has been as high as 41.15 and as low as -8.96, with a median of 11.28, all within the past year.

We should also highlight that HRTG has a P/B ratio of 0.59. The P/B is a method of comparing a stock's market value to 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 1.46. HRTG's P/B has been as high as 0.73 and as low as 0.36, with a median of 0.49, over the past year.

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

Shares of The Travelers Companies currently holds a Forward P/E ratio of 13.96, and its PEG ratio is 4.42. In comparison, its industry sports average P/E and PEG ratios of 33.13 and 3.25.

TRV's price-to-earnings ratio has been as high as 14.05 and as low as 11.52, with a median of 12.81, while its PEG ratio has been as high as 4.45 and as low as 1.77, with a median of 2.04, all within the past year.

Additionally, The Travelers Companies has a P/B ratio of 1.59 while its industry's price-to-book ratio sits at 1.46. For TRV, this valuation metric has been as high as 1.60, as low as 1.26, with a median of 1.36 over the past year.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Heritage Insurance and The Travelers Companies are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, HRTG and TRV feels like a great value stock at the moment.


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The Travelers Companies, Inc. (TRV) - free report >>

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