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Is MGIC Investment (MTG) Stock Undervalued 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.
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.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company value investors might notice is MGIC Investment (MTG - Free Report) . MTG is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 5.75, which compares to its industry's average of 9.68. Over the last 12 months, MTG's Forward P/E has been as high as 8.56 and as low as 5.75, with a median of 7.54.
Investors should also note that MTG holds a PEG ratio of 1.15. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. MTG's PEG compares to its industry's average PEG of 1.40. MTG's PEG has been as high as 1.71 and as low as 1.15, with a median of 1.51, all within the past year.
We should also highlight that MTG has a P/B ratio of 0.87. 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 solid versus its industry's average P/B of 1.65. Over the past year, MTG's P/B has been as high as 1.11 and as low as 0.86, with a median of 0.99.
Finally, we should also recognize that MTG has a P/CF ratio of 5.81. 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. MTG's current P/CF looks attractive when compared to its industry's average P/CF of 7.88. Over the past year, MTG's P/CF has been as high as 10.26 and as low as 5.76, with a median of 7.50.
Another great Insurance - Multi line stock you could consider is Zurich Insurance Group (ZURVY - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
Zurich Insurance Group is currently trading with a Forward P/E ratio of 10.96 while its PEG ratio sits at 1.37. Both of the company's metrics compare favorably to its industry's average P/E of 9.68 and average PEG ratio of 1.40.
ZURVY's Forward P/E has been as high as 14.86 and as low as 10.96, with a median of 12.85. During the same time period, its PEG ratio has been as high as 1.37, as low as 1.37, with a median of 1.37.
Additionally, Zurich Insurance Group has a P/B ratio of 1.64 while its industry's price-to-book ratio sits at 1.65. For ZURVY, this valuation metric has been as high as 1.92, as low as 1.53, with a median of 1.72 over the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that MGIC Investment and Zurich Insurance Group are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, MTG and ZURVY feels like a great value stock at the moment.
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Is MGIC Investment (MTG) Stock 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.
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.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company value investors might notice is MGIC Investment (MTG - Free Report) . MTG is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 5.75, which compares to its industry's average of 9.68. Over the last 12 months, MTG's Forward P/E has been as high as 8.56 and as low as 5.75, with a median of 7.54.
Investors should also note that MTG holds a PEG ratio of 1.15. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. MTG's PEG compares to its industry's average PEG of 1.40. MTG's PEG has been as high as 1.71 and as low as 1.15, with a median of 1.51, all within the past year.
We should also highlight that MTG has a P/B ratio of 0.87. 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 solid versus its industry's average P/B of 1.65. Over the past year, MTG's P/B has been as high as 1.11 and as low as 0.86, with a median of 0.99.
Finally, we should also recognize that MTG has a P/CF ratio of 5.81. 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. MTG's current P/CF looks attractive when compared to its industry's average P/CF of 7.88. Over the past year, MTG's P/CF has been as high as 10.26 and as low as 5.76, with a median of 7.50.
Another great Insurance - Multi line stock you could consider is Zurich Insurance Group (ZURVY - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
Zurich Insurance Group is currently trading with a Forward P/E ratio of 10.96 while its PEG ratio sits at 1.37. Both of the company's metrics compare favorably to its industry's average P/E of 9.68 and average PEG ratio of 1.40.
ZURVY's Forward P/E has been as high as 14.86 and as low as 10.96, with a median of 12.85. During the same time period, its PEG ratio has been as high as 1.37, as low as 1.37, with a median of 1.37.
Additionally, Zurich Insurance Group has a P/B ratio of 1.64 while its industry's price-to-book ratio sits at 1.65. For ZURVY, this valuation metric has been as high as 1.92, as low as 1.53, with a median of 1.72 over the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that MGIC Investment and Zurich Insurance Group are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, MTG and ZURVY feels like a great value stock at the moment.