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Should Value Investors Buy Argo Group (ARGO) Stock?
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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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 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.
Argo Group is a stock many investors are watching right now. ARGO is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock has a Forward P/E ratio of 8.86. This compares to its industry's average Forward P/E of 24.62. ARGO's Forward P/E has been as high as 14.93 and as low as 4.73, with a median of 9.22, all within the past year.
Another notable valuation metric for ARGO is its P/B ratio of 0.77. 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. ARGO's current P/B looks attractive when compared to its industry's average P/B of 1.47. Within the past 52 weeks, ARGO's P/B has been as high as 1.32 and as low as 0.52, with a median of 0.90.
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. ARGO has a P/S ratio of 0.47. This compares to its industry's average P/S of 0.89.
The Travelers Companies (TRV - Free Report) may be another strong Insurance - Property and Casualty stock to add to your shortlist. TRV is a # 2 (Buy) stock with a Value grade of A.
Shares of The Travelers Companies are currently trading at a forward earnings multiple of 12.50 and a PEG ratio of 2.28 compared to its industry's P/E and PEG ratios of 24.62 and 2.30, respectively.
TRV's price-to-earnings ratio has been as high as 14.05 and as low as 10.46, with a median of 12.53, while its PEG ratio has been as high as 4.49 and as low as 1.87, with a median of 3.03, all within the past year.
Furthermore, The Travelers Companies holds a P/B ratio of 2.15 and its industry's price-to-book ratio is 1.47. TRV's P/B has been as high as 2.23, as low as 1.33, with a median of 1.64 over the past 12 months.
These are just a handful of the figures considered in Argo Group and The Travelers Companies's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that ARGO and TRV is an impressive value stock right now.
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Should Value Investors Buy Argo Group (ARGO) Stock?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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 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.
Argo Group is a stock many investors are watching right now. ARGO is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock has a Forward P/E ratio of 8.86. This compares to its industry's average Forward P/E of 24.62. ARGO's Forward P/E has been as high as 14.93 and as low as 4.73, with a median of 9.22, all within the past year.
Another notable valuation metric for ARGO is its P/B ratio of 0.77. 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. ARGO's current P/B looks attractive when compared to its industry's average P/B of 1.47. Within the past 52 weeks, ARGO's P/B has been as high as 1.32 and as low as 0.52, with a median of 0.90.
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. ARGO has a P/S ratio of 0.47. This compares to its industry's average P/S of 0.89.
The Travelers Companies (TRV - Free Report) may be another strong Insurance - Property and Casualty stock to add to your shortlist. TRV is a # 2 (Buy) stock with a Value grade of A.
Shares of The Travelers Companies are currently trading at a forward earnings multiple of 12.50 and a PEG ratio of 2.28 compared to its industry's P/E and PEG ratios of 24.62 and 2.30, respectively.
TRV's price-to-earnings ratio has been as high as 14.05 and as low as 10.46, with a median of 12.53, while its PEG ratio has been as high as 4.49 and as low as 1.87, with a median of 3.03, all within the past year.
Furthermore, The Travelers Companies holds a P/B ratio of 2.15 and its industry's price-to-book ratio is 1.47. TRV's P/B has been as high as 2.23, as low as 1.33, with a median of 1.64 over the past 12 months.
These are just a handful of the figures considered in Argo Group and The Travelers Companies's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that ARGO and TRV is an impressive value stock right now.