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Are Investors Undervaluing Assurant (AIZ) 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.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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.

Assurant (AIZ - Free Report) is a stock many investors are watching right now. AIZ is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.

Investors should also note that AIZ holds a PEG ratio of 0.80. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. AIZ's PEG compares to its industry's average PEG of 1.47. AIZ's PEG has been as high as 1 and as low as 0.72, with a median of 0.80, all within the past year.

Finally, investors should note that AIZ has a P/CF ratio of 6.88. 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. AIZ's current P/CF looks attractive when compared to its industry's average P/CF of 8.31. Over the past 52 weeks, AIZ's P/CF has been as high as 16.95 and as low as 5.50, with a median of 6.69.

If you're looking for another solid Insurance - Multi line value stock, take a look at MGIC Investment (MTG - Free Report) . MTG is a # 2 (Buy) stock with a Value score of A.

Shares of MGIC Investment currently holds a Forward P/E ratio of 5.83, and its PEG ratio is 1.17. In comparison, its industry sports average P/E and PEG ratios of 10.07 and 1.47.

Over the past year, MTG's P/E has been as high as 8.56, as low as 5.78, with a median of 7.67; its PEG ratio has been as high as 1.71, as low as 1.16, with a median of 0.80 during the same time period.

Furthermore, MGIC Investment holds a P/B ratio of 0.88 and its industry's price-to-book ratio is 1.59. MTG's P/B has been as high as 1.11, as low as 0.86, with a median of 1.01 over the past 12 months.

These are just a handful of the figures considered in Assurant and MGIC Investment's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that AIZ and MTG is an impressive value stock right now.


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