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RE or PGR: Which Is the Better Value Stock Right Now?
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Investors looking for stocks in the Insurance - Property and Casualty sector might want to consider either Everest Re or Progressive (PGR - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, Everest Re is sporting a Zacks Rank of #2 (Buy), while Progressive has a Zacks Rank of #3 (Hold). This means that RE's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one piece of the puzzle for value investors.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
RE currently has a forward P/E ratio of 8.48, while PGR has a forward P/E of 23.34. We also note that RE has a PEG ratio of 0.27. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. PGR currently has a PEG ratio of 0.93.
Another notable valuation metric for RE is its P/B ratio of 1.74. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, PGR has a P/B of 4.80.
Based on these metrics and many more, RE holds a Value grade of A, while PGR has a Value grade of C.
RE stands above PGR thanks to its solid earnings outlook, and based on these valuation figures, we also feel that RE is the superior value option right now.
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RE or PGR: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Insurance - Property and Casualty sector might want to consider either Everest Re or Progressive (PGR - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, Everest Re is sporting a Zacks Rank of #2 (Buy), while Progressive has a Zacks Rank of #3 (Hold). This means that RE's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one piece of the puzzle for value investors.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
RE currently has a forward P/E ratio of 8.48, while PGR has a forward P/E of 23.34. We also note that RE has a PEG ratio of 0.27. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. PGR currently has a PEG ratio of 0.93.
Another notable valuation metric for RE is its P/B ratio of 1.74. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, PGR has a P/B of 4.80.
Based on these metrics and many more, RE holds a Value grade of A, while PGR has a Value grade of C.
RE stands above PGR thanks to its solid earnings outlook, and based on these valuation figures, we also feel that RE is the superior value option right now.