We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Is Axis Capital Holdings (AXS) Stock Undervalued Right Now?
Read MoreHide Full Article
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 company value investors might notice is Axis Capital Holdings (AXS - Free Report) . AXS is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.
AXS is also sporting a PEG ratio of 1.33. 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 2.47. Over the last 12 months, AXS's PEG has been as high as 2 and as low as 1.28, with a median of 1.55.
We should also highlight that AXS has a P/B ratio of 1.04. 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. AXS's current P/B looks attractive when compared to its industry's average P/B of 1.41. Over the past 12 months, AXS's P/B has been as high as 1.31 and as low as 0.99, with a median of 1.11.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. AXS has a P/S ratio of 0.87. This compares to its industry's average P/S of 0.88.
Finally, investors will want to recognize that AXS has a P/CF ratio of 13.84. 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 36.58. Over the past year, AXS's P/CF has been as high as 17.12 and as low as 6.10, with a median of 9.81.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Axis Capital Holdings is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, AXS feels like a great value stock at the moment.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Is Axis Capital Holdings (AXS) Stock Undervalued Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 company value investors might notice is Axis Capital Holdings (AXS - Free Report) . AXS is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.
AXS is also sporting a PEG ratio of 1.33. 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 2.47. Over the last 12 months, AXS's PEG has been as high as 2 and as low as 1.28, with a median of 1.55.
We should also highlight that AXS has a P/B ratio of 1.04. 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. AXS's current P/B looks attractive when compared to its industry's average P/B of 1.41. Over the past 12 months, AXS's P/B has been as high as 1.31 and as low as 0.99, with a median of 1.11.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. AXS has a P/S ratio of 0.87. This compares to its industry's average P/S of 0.88.
Finally, investors will want to recognize that AXS has a P/CF ratio of 13.84. 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 36.58. Over the past year, AXS's P/CF has been as high as 17.12 and as low as 6.10, with a median of 9.81.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Axis Capital Holdings is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, AXS feels like a great value stock at the moment.