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Is NMI (NMIH) a Great Value Stock 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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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 NMI (NMIH - Free Report) . NMIH is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.

We should also highlight that NMIH has a P/B ratio of 1.16. 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. NMIH's current P/B looks attractive when compared to its industry's average P/B of 1.34. Within the past 52 weeks, NMIH's P/B has been as high as 1.46 and as low as 0.87, with a median of 1.17.

Finally, investors should note that NMIH has a P/CF ratio of 6.37. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. NMIH's current P/CF looks attractive when compared to its industry's average P/CF of 24.88. NMIH's P/CF has been as high as 9.23 and as low as 5.07, with a median of 7.29, all within the past year.

Everest Re Group may be another strong Insurance - Property and Casualty stock to add to your shortlist. RE is a # 2 (Buy) stock with a Value grade of A.

Shares of Everest Re Group are currently trading at a forward earnings multiple of 7.26 and a PEG ratio of 0.67 compared to its industry's P/E and PEG ratios of 24.70 and 2.36, respectively.

Over the last 12 months, RE's P/E has been as high as 9.82, as low as 6.76, with a median of 8.21, and its PEG ratio has been as high as 0.88, as low as 0.17, with a median of 0.77.

Additionally, Everest Re Group has a P/B ratio of 1.27 while its industry's price-to-book ratio sits at 1.34. For RE, this valuation metric has been as high as 1.58, as low as 1, with a median of 1.17 over the past year.

These are only a few of the key metrics included in NMI and Everest Re Group strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, NMIH and RE look like an impressive value stock at the moment.


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