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Should Value Investors Buy Axis Capital Holdings (AXS) Stock?
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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find 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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company to watch right now is Axis Capital Holdings (AXS - Free Report) . AXS is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 8.37, while its industry has an average P/E of 24.85. Over the past year, AXS's Forward P/E has been as high as 13.10 and as low as 8.29, with a median of 9.99.
We also note that AXS holds a PEG ratio of 1.67. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. AXS's industry currently sports an average PEG of 2.06. Within the past year, AXS's PEG has been as high as 2.62 and as low as 1.66, with a median of 2.
We should also highlight that AXS has a P/B ratio of 1.02. 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 1.16. AXS's P/B has been as high as 1.13 and as low as 0.79, with a median of 0.93, 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. AXS has a P/S ratio of 0.88. This compares to its industry's average P/S of 0.93.
If you're looking for another solid Insurance - Property and Casualty value stock, take a look at Universal Insurance Holdings (UVE - Free Report) . UVE is a # 2 (Buy) stock with a Value score of A.
Universal Insurance Holdings also has a P/B ratio of 0.98 compared to its industry's price-to-book ratio of 1.16. Over the past year, its P/B ratio has been as high as 1.41, as low as 0.82, with a median of 0.95.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Axis Capital Holdings and Universal Insurance Holdings are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, AXS and UVE feels like a great value stock at the moment.
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Should Value Investors Buy Axis Capital Holdings (AXS) Stock?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find 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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company to watch right now is Axis Capital Holdings (AXS - Free Report) . AXS is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 8.37, while its industry has an average P/E of 24.85. Over the past year, AXS's Forward P/E has been as high as 13.10 and as low as 8.29, with a median of 9.99.
We also note that AXS holds a PEG ratio of 1.67. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. AXS's industry currently sports an average PEG of 2.06. Within the past year, AXS's PEG has been as high as 2.62 and as low as 1.66, with a median of 2.
We should also highlight that AXS has a P/B ratio of 1.02. 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 1.16. AXS's P/B has been as high as 1.13 and as low as 0.79, with a median of 0.93, 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. AXS has a P/S ratio of 0.88. This compares to its industry's average P/S of 0.93.
If you're looking for another solid Insurance - Property and Casualty value stock, take a look at Universal Insurance Holdings (UVE - Free Report) . UVE is a # 2 (Buy) stock with a Value score of A.
Universal Insurance Holdings also has a P/B ratio of 0.98 compared to its industry's price-to-book ratio of 1.16. Over the past year, its P/B ratio has been as high as 1.41, as low as 0.82, with a median of 0.95.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Axis Capital Holdings and Universal Insurance Holdings are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, AXS and UVE feels like a great value stock at the moment.