We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Is MGIC Investment (MTG) Stock Undervalued Right Now?
Read MoreHide Full Article
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One stock to keep an eye on is MGIC Investment (MTG - Free Report) . MTG is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 5.89. This compares to its industry's average Forward P/E of 9.90. MTG's Forward P/E has been as high as 8.56 and as low as 5.06, with a median of 6.34, all within the past year.
Another notable valuation metric for MTG is its P/B ratio of 0.91. The P/B ratio is used to compare a stock's market value with 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 2.28. Within the past 52 weeks, MTG's P/B has been as high as 1.11 and as low as 0.77, with a median of 0.94.
Finally, we should also recognize that MTG has a P/CF ratio of 5.22. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. MTG's current P/CF looks attractive when compared to its industry's average P/CF of 9.63. Within the past 12 months, MTG's P/CF has been as high as 8.60 and as low as 4.75, with a median of 6.04.
Another great Insurance - Multi line stock you could consider is Prudential (PUK - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
Shares of Prudential are currently trading at a forward earnings multiple of 7.81 and a PEG ratio of 0.87 compared to its industry's P/E and PEG ratios of 9.90 and 0.99, respectively.
Over the last 12 months, PUK's P/E has been as high as 17.77, as low as 7.66, with a median of 10.99, and its PEG ratio has been as high as 1.97, as low as 0.85, with a median of 1.22.
Furthermore, Prudential holds a P/B ratio of 1.59 and its industry's price-to-book ratio is 2.28. PUK's P/B has been as high as 3.53, as low as 1.55, with a median of 2.12 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 MGIC Investment and Prudential are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, MTG and PUK feels like a great value stock at the moment.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Is MGIC Investment (MTG) Stock Undervalued Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One stock to keep an eye on is MGIC Investment (MTG - Free Report) . MTG is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 5.89. This compares to its industry's average Forward P/E of 9.90. MTG's Forward P/E has been as high as 8.56 and as low as 5.06, with a median of 6.34, all within the past year.
Another notable valuation metric for MTG is its P/B ratio of 0.91. The P/B ratio is used to compare a stock's market value with 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 2.28. Within the past 52 weeks, MTG's P/B has been as high as 1.11 and as low as 0.77, with a median of 0.94.
Finally, we should also recognize that MTG has a P/CF ratio of 5.22. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. MTG's current P/CF looks attractive when compared to its industry's average P/CF of 9.63. Within the past 12 months, MTG's P/CF has been as high as 8.60 and as low as 4.75, with a median of 6.04.
Another great Insurance - Multi line stock you could consider is Prudential (PUK - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
Shares of Prudential are currently trading at a forward earnings multiple of 7.81 and a PEG ratio of 0.87 compared to its industry's P/E and PEG ratios of 9.90 and 0.99, respectively.
Over the last 12 months, PUK's P/E has been as high as 17.77, as low as 7.66, with a median of 10.99, and its PEG ratio has been as high as 1.97, as low as 0.85, with a median of 1.22.
Furthermore, Prudential holds a P/B ratio of 1.59 and its industry's price-to-book ratio is 2.28. PUK's P/B has been as high as 3.53, as low as 1.55, with a median of 2.12 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 MGIC Investment and Prudential are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, MTG and PUK feels like a great value stock at the moment.