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Are Investors Undervaluing Stewart Information Services (STC) Right Now?
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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.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 Stewart Information Services (STC - Free Report) . STC is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.
Another notable valuation metric for STC is its P/B ratio of 1. 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 stock's P/B looks solid versus its industry's average P/B of 1.18. STC's P/B has been as high as 1.77 and as low as 0.94, with a median of 1.41, over the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. STC has a P/S ratio of 0.4. This compares to its industry's average P/S of 0.93.
Finally, investors will want to recognize that STC has a P/CF ratio of 3.58. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. STC's P/CF compares to its industry's average P/CF of 6.30. Within the past 12 months, STC's P/CF has been as high as 6.63 and as low as 3.37, with a median of 5.35.
If you're looking for another solid Insurance - Property and Casualty value stock, take a look at Tokio Marine (TKOMY - Free Report) . TKOMY is a # 2 (Buy) stock with a Value score of A.
Shares of Tokio Marine are currently trading at a forward earnings multiple of 9.71 and a PEG ratio of 0.43 compared to its industry's P/E and PEG ratios of 26.26 and 2.26, respectively.
Over the last 12 months, TKOMY's P/E has been as high as 15.35, as low as 7.85, with a median of 11.82, and its PEG ratio has been as high as 0.52, as low as 0.43, with a median of 0.45.
Tokio Marine also has a P/B ratio of 1.09 compared to its industry's price-to-book ratio of 1.18. Over the past year, its P/B ratio has been as high as 1.23, as low as 0.90, with a median of 1.04.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Stewart Information Services and Tokio Marine are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, STC and TKOMY feels like a great value stock at the moment.
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Are Investors Undervaluing Stewart Information Services (STC) Right Now?
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.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 Stewart Information Services (STC - Free Report) . STC is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.
Another notable valuation metric for STC is its P/B ratio of 1. 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 stock's P/B looks solid versus its industry's average P/B of 1.18. STC's P/B has been as high as 1.77 and as low as 0.94, with a median of 1.41, over the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. STC has a P/S ratio of 0.4. This compares to its industry's average P/S of 0.93.
Finally, investors will want to recognize that STC has a P/CF ratio of 3.58. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. STC's P/CF compares to its industry's average P/CF of 6.30. Within the past 12 months, STC's P/CF has been as high as 6.63 and as low as 3.37, with a median of 5.35.
If you're looking for another solid Insurance - Property and Casualty value stock, take a look at Tokio Marine (TKOMY - Free Report) . TKOMY is a # 2 (Buy) stock with a Value score of A.
Shares of Tokio Marine are currently trading at a forward earnings multiple of 9.71 and a PEG ratio of 0.43 compared to its industry's P/E and PEG ratios of 26.26 and 2.26, respectively.
Over the last 12 months, TKOMY's P/E has been as high as 15.35, as low as 7.85, with a median of 11.82, and its PEG ratio has been as high as 0.52, as low as 0.43, with a median of 0.45.
Tokio Marine also has a P/B ratio of 1.09 compared to its industry's price-to-book ratio of 1.18. Over the past year, its P/B ratio has been as high as 1.23, as low as 0.90, with a median of 1.04.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Stewart Information Services and Tokio Marine are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, STC and TKOMY feels like a great value stock at the moment.