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Should Value Investors Buy Axis Capital Holdings (AXS) Stock?
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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.
Axis Capital Holdings (AXS - Free Report) is a stock many investors are watching right now. AXS is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A.
Investors will also notice that AXS has a PEG ratio of 1.64. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. AXS's PEG compares to its industry's average PEG of 2.10. Within the past year, AXS's PEG has been as high as 2.05 and as low as 1.43, with a median of 1.63.
We should also highlight that AXS has a P/B ratio of 1.40. 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. AXS's current P/B looks attractive when compared to its industry's average P/B of 1.52. AXS's P/B has been as high as 1.42 and as low as 0.89, with a median of 1.10, over the past year.
Finally, we should also recognize that AXS has a P/CF ratio of 16.37. 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 56.35. Over the past year, AXS's P/CF has been as high as 16.55 and as low as 6, with a median of 8.40.
If you're looking for another solid Insurance - Property and Casualty value stock, take a look at The Hanover Insurance Group (THG - Free Report) . THG is a # 2 (Buy) stock with a Value score of A.
The Hanover Insurance Group is trading at a forward earnings multiple of 14.18 at the moment, with a PEG ratio of 0.36. This compares to its industry's average P/E of 24.87 and average PEG ratio of 2.10.
THG's Forward P/E has been as high as 15.57 and as low as 10.95, with a median of 13.22. During the same time period, its PEG ratio has been as high as 1.04, as low as 0.36, with a median of 0.82.
The Hanover Insurance Group sports a P/B ratio of 2.19 as well; this compares to its industry's price-to-book ratio of 1.52. In the past 52 weeks, THG's P/B has been as high as 2.29, as low as 1.52, with a median of 1.90.
These are just a handful of the figures considered in Axis Capital Holdings and The Hanover Insurance Group'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 AXS and THG is an impressive value stock right now.
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Should Value Investors Buy Axis Capital Holdings (AXS) Stock?
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.
Axis Capital Holdings (AXS - Free Report) is a stock many investors are watching right now. AXS is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A.
Investors will also notice that AXS has a PEG ratio of 1.64. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. AXS's PEG compares to its industry's average PEG of 2.10. Within the past year, AXS's PEG has been as high as 2.05 and as low as 1.43, with a median of 1.63.
We should also highlight that AXS has a P/B ratio of 1.40. 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. AXS's current P/B looks attractive when compared to its industry's average P/B of 1.52. AXS's P/B has been as high as 1.42 and as low as 0.89, with a median of 1.10, over the past year.
Finally, we should also recognize that AXS has a P/CF ratio of 16.37. 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 56.35. Over the past year, AXS's P/CF has been as high as 16.55 and as low as 6, with a median of 8.40.
If you're looking for another solid Insurance - Property and Casualty value stock, take a look at The Hanover Insurance Group (THG - Free Report) . THG is a # 2 (Buy) stock with a Value score of A.
The Hanover Insurance Group is trading at a forward earnings multiple of 14.18 at the moment, with a PEG ratio of 0.36. This compares to its industry's average P/E of 24.87 and average PEG ratio of 2.10.
THG's Forward P/E has been as high as 15.57 and as low as 10.95, with a median of 13.22. During the same time period, its PEG ratio has been as high as 1.04, as low as 0.36, with a median of 0.82.
The Hanover Insurance Group sports a P/B ratio of 2.19 as well; this compares to its industry's price-to-book ratio of 1.52. In the past 52 weeks, THG's P/B has been as high as 2.29, as low as 1.52, with a median of 1.90.
These are just a handful of the figures considered in Axis Capital Holdings and The Hanover Insurance Group'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 AXS and THG is an impressive value stock right now.