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Is Arch Capital Group (ACGL) a Great Value Stock Right Now?
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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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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.
Arch Capital Group (ACGL - Free Report) is a stock many investors are watching right now. ACGL is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 11.70 right now. For comparison, its industry sports an average P/E of 25.10. Over the last 12 months, ACGL's Forward P/E has been as high as 15.56 and as low as 7.92, with a median of 10.01.
We also note that ACGL holds a PEG ratio of 1.17. 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. ACGL's industry currently sports an average PEG of 2.12. Within the past year, ACGL's PEG has been as high as 1.56 and as low as 0.79, with a median of 1.
Finally, our model also underscores that ACGL has a P/CF ratio of 18.29. 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. This stock's P/CF looks attractive against its industry's average P/CF of 56.68. Over the past year, ACGL's P/CF has been as high as 18.29 and as low as 7.65, with a median of 9.72.
Another great Insurance - Property and Casualty stock you could consider is The Hanover Insurance Group (THG - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
Shares of The Hanover Insurance Group currently holds a Forward P/E ratio of 14.15, and its PEG ratio is 0.36. In comparison, its industry sports average P/E and PEG ratios of 25.10 and 2.12.
THG's price-to-earnings ratio has been as high as 15.57 and as low as 10.95, with a median of 13.22, while its PEG ratio has been as high as 1.04 and as low as 0.36, with a median of 0.82, all within the past year.
Furthermore, The Hanover Insurance Group holds a P/B ratio of 2.17 and its industry's price-to-book ratio is 1.53. THG's P/B has been as high as 2.29, as low as 1.52, with a median of 1.90 over the past 12 months.
These are only a few of the key metrics included in Arch Capital Group and The Hanover Insurance 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, ACGL and THG look like an impressive value stock at the moment.
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Is Arch Capital Group (ACGL) a Great Value Stock Right Now?
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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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.
Arch Capital Group (ACGL - Free Report) is a stock many investors are watching right now. ACGL is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 11.70 right now. For comparison, its industry sports an average P/E of 25.10. Over the last 12 months, ACGL's Forward P/E has been as high as 15.56 and as low as 7.92, with a median of 10.01.
We also note that ACGL holds a PEG ratio of 1.17. 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. ACGL's industry currently sports an average PEG of 2.12. Within the past year, ACGL's PEG has been as high as 1.56 and as low as 0.79, with a median of 1.
Finally, our model also underscores that ACGL has a P/CF ratio of 18.29. 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. This stock's P/CF looks attractive against its industry's average P/CF of 56.68. Over the past year, ACGL's P/CF has been as high as 18.29 and as low as 7.65, with a median of 9.72.
Another great Insurance - Property and Casualty stock you could consider is The Hanover Insurance Group (THG - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
Shares of The Hanover Insurance Group currently holds a Forward P/E ratio of 14.15, and its PEG ratio is 0.36. In comparison, its industry sports average P/E and PEG ratios of 25.10 and 2.12.
THG's price-to-earnings ratio has been as high as 15.57 and as low as 10.95, with a median of 13.22, while its PEG ratio has been as high as 1.04 and as low as 0.36, with a median of 0.82, all within the past year.
Furthermore, The Hanover Insurance Group holds a P/B ratio of 2.17 and its industry's price-to-book ratio is 1.53. THG's P/B has been as high as 2.29, as low as 1.52, with a median of 1.90 over the past 12 months.
These are only a few of the key metrics included in Arch Capital Group and The Hanover Insurance 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, ACGL and THG look like an impressive value stock at the moment.