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Is Stewart Information Services (STC) a Great Value Stock Right Now?

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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

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 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.

One company value investors might notice is Stewart Information Services (STC - Free Report) . STC is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value.

Investors should also recognize that STC has a P/B ratio of 1.05. 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 stock's P/B looks attractive against its industry's average P/B of 1.33. STC's P/B has been as high as 1.77 and as low as 1.05, with a median of 1.47, over the past year.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. STC has a P/S ratio of 0.4. This compares to its industry's average P/S of 1.06.

Finally, our model also underscores that STC has a P/CF ratio of 3.81. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. STC's current P/CF looks attractive when compared to its industry's average P/CF of 6.83. STC's P/CF has been as high as 7.24 and as low as 3.81, with a median of 5.68, all within the past year.

These are only a few of the key metrics included in Stewart Information Services'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, STC looks like an impressive value stock at the moment.


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