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RE vs. CINF: Which Stock Is the Better Value Option?
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Investors interested in Insurance - Property and Casualty stocks are likely familiar with Everest Re and Cincinnati Financial (CINF - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, Everest Re has a Zacks Rank of #1 (Strong Buy), while Cincinnati Financial has a Zacks Rank of #2 (Buy). Investors should feel comfortable knowing that RE likely has seen a stronger improvement to its earnings outlook than CINF has recently. But this is only part of the picture for value investors.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
RE currently has a forward P/E ratio of 7.85, while CINF has a forward P/E of 21.81. We also note that RE has a PEG ratio of 0.26. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. CINF currently has a PEG ratio of 1.24.
Another notable valuation metric for RE is its P/B ratio of 1.66. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, CINF has a P/B of 1.67.
Based on these metrics and many more, RE holds a Value grade of B, while CINF has a Value grade of C.
RE sticks out from CINF in both our Zacks Rank and Style Scores models, so value investors will likely feel that RE is the better option right now.
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RE vs. CINF: Which Stock Is the Better Value Option?
Investors interested in Insurance - Property and Casualty stocks are likely familiar with Everest Re and Cincinnati Financial (CINF - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, Everest Re has a Zacks Rank of #1 (Strong Buy), while Cincinnati Financial has a Zacks Rank of #2 (Buy). Investors should feel comfortable knowing that RE likely has seen a stronger improvement to its earnings outlook than CINF has recently. But this is only part of the picture for value investors.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
RE currently has a forward P/E ratio of 7.85, while CINF has a forward P/E of 21.81. We also note that RE has a PEG ratio of 0.26. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. CINF currently has a PEG ratio of 1.24.
Another notable valuation metric for RE is its P/B ratio of 1.66. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, CINF has a P/B of 1.67.
Based on these metrics and many more, RE holds a Value grade of B, while CINF has a Value grade of C.
RE sticks out from CINF in both our Zacks Rank and Style Scores models, so value investors will likely feel that RE is the better option right now.