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Should Value Investors Buy CNA Financial (CNA) 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.
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 stock to keep an eye on is CNA Financial (CNA - Free Report) . CNA is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 10.33, which compares to its industry's average of 24.62. Over the past 52 weeks, CNA's Forward P/E has been as high as 11.66 and as low as 8.99, with a median of 10.29.
We also note that CNA holds a PEG ratio of 2.07. 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. CNA's industry currently sports an average PEG of 2.08. Within the past year, CNA's PEG has been as high as 2.33 and as low as 1.80, with a median of 2.06.
Another notable valuation metric for CNA is its P/B ratio of 1.36. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 1.50. Over the past year, CNA's P/B has been as high as 1.43 and as low as 0.92, with a median of 1.22.
Finally, our model also underscores that CNA has a P/CF ratio of 14.75. 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. CNA's P/CF compares to its industry's average P/CF of 55.68. Within the past 12 months, CNA's P/CF has been as high as 15.02 and as low as 9.75, with a median of 11.50.
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 are currently trading at a forward earnings multiple of 13.78 and a PEG ratio of 0.35 compared to its industry's P/E and PEG ratios of 24.62 and 2.08, respectively.
THG's Forward P/E has been as high as 15.57 and as low as 10.95, with a median of 13.23. During the same time period, its PEG ratio has been as high as 1.04, as low as 0.35, with a median of 0.81.
The Hanover Insurance Group also has a P/B ratio of 2.13 compared to its industry's price-to-book ratio of 1.50. Over the past year, its P/B ratio has been as high as 2.29, as low as 1.52, with a median of 1.91.
Value investors will likely look at more than just these metrics, but the above data helps show that CNA Financial and The Hanover Insurance Group are likely undervalued currently. And when considering the strength of its earnings outlook, CNA and THG sticks out as one of the market's strongest value stocks.
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Should Value Investors Buy CNA Financial (CNA) 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.
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 stock to keep an eye on is CNA Financial (CNA - Free Report) . CNA is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 10.33, which compares to its industry's average of 24.62. Over the past 52 weeks, CNA's Forward P/E has been as high as 11.66 and as low as 8.99, with a median of 10.29.
We also note that CNA holds a PEG ratio of 2.07. 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. CNA's industry currently sports an average PEG of 2.08. Within the past year, CNA's PEG has been as high as 2.33 and as low as 1.80, with a median of 2.06.
Another notable valuation metric for CNA is its P/B ratio of 1.36. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 1.50. Over the past year, CNA's P/B has been as high as 1.43 and as low as 0.92, with a median of 1.22.
Finally, our model also underscores that CNA has a P/CF ratio of 14.75. 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. CNA's P/CF compares to its industry's average P/CF of 55.68. Within the past 12 months, CNA's P/CF has been as high as 15.02 and as low as 9.75, with a median of 11.50.
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 are currently trading at a forward earnings multiple of 13.78 and a PEG ratio of 0.35 compared to its industry's P/E and PEG ratios of 24.62 and 2.08, respectively.
THG's Forward P/E has been as high as 15.57 and as low as 10.95, with a median of 13.23. During the same time period, its PEG ratio has been as high as 1.04, as low as 0.35, with a median of 0.81.
The Hanover Insurance Group also has a P/B ratio of 2.13 compared to its industry's price-to-book ratio of 1.50. Over the past year, its P/B ratio has been as high as 2.29, as low as 1.52, with a median of 1.91.
Value investors will likely look at more than just these metrics, but the above data helps show that CNA Financial and The Hanover Insurance Group are likely undervalued currently. And when considering the strength of its earnings outlook, CNA and THG sticks out as one of the market's strongest value stocks.