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.
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
Axis Capital Holdings (. AXS is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. AXS Quick Quote AXS - Free Report)
Investors will also notice that AXS has a PEG ratio of 1.45. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. AXS's industry has an average PEG of 2.03 right now. Over the past 52 weeks, AXS's PEG has been as high as 2.62 and as low as 1.43, with a median of 1.90.
Another notable valuation metric for AXS is its P/B ratio of 1.02. 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 attractive against its industry's average P/B of 1.29. AXS's P/B has been as high as 1.18 and as low as 0.79, with a median of 1, over the past year.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's 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 0.83. This compares to its industry's average P/S of 0.88.
Finally, investors will want to recognize that AXS has a P/CF ratio of 7.79. 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. This stock's P/CF looks attractive against its industry's average P/CF of 23.89. Over the past year, AXS's P/CF has been as high as 9.73 and as low as 6, with a median of 7.56.
If you're looking for another solid Insurance - Property and Casualty value stock, take a look at
Stewart Information Services (. STC is a # 2 (Buy) stock with a Value score of A. STC Quick Quote STC - Free Report)
Furthermore, Stewart Information Services holds a P/B ratio of 0.85 and its industry's price-to-book ratio is 1.29. STC's P/B has been as high as 1.77, as low as 0.85, with a median of 1.32 over the past 12 months.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Axis Capital Holdings and Stewart Information Services are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, AXS and STC feels like a great value stock at the moment.