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Is Arch Capital Group (ACGL) Stock Undervalued 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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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 stock to keep an eye on is Arch Capital Group (ACGL - Free Report) . ACGL is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 9.33, which compares to its industry's average of 27.01. Over the last 12 months, ACGL's Forward P/E has been as high as 16.71 and as low as 8.97, with a median of 10.18.

ACGL is also sporting a PEG ratio of 0.93. 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. ACGL's industry currently sports an average PEG of 2.33. Over the past 52 weeks, ACGL's PEG has been as high as 1.67 and as low as 0.90, with a median of 1.02.

Another great Insurance - Property and Casualty stock you could consider is Fidelity National Financial (FNF - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.

Furthermore, Fidelity National Financial holds a P/B ratio of 1.32 and its industry's price-to-book ratio is 1.22. FNF's P/B has been as high as 1.69, as low as 1.20, with a median of 1.48 over the past 12 months.

These are only a few of the key metrics included in Arch Capital Group and Fidelity National Financial strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, ACGL and FNF look like an impressive value stock at the moment.


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Fidelity National Financial, Inc. (FNF) - free report >>

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