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Should Value Investors Buy Arch Capital Group (ACGL) 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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
Arch Capital Group (ACGL - Free Report) is a stock many investors are watching right now. ACGL is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 10.77 right now. For comparison, its industry sports an average P/E of 27.86. Over the past 52 weeks, ACGL's Forward P/E has been as high as 12.38 and as low as 9.40, with a median of 10.94.
We also note that ACGL holds a PEG ratio of 1.08. 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. ACGL's industry currently sports an average PEG of 2.64. Over the last 12 months, ACGL's PEG has been as high as 1.24 and as low as 0.94, with a median of 1.09.
Finally, investors should note that ACGL has a P/CF ratio of 7.21. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 9.79. Within the past 12 months, ACGL's P/CF has been as high as 17.25 and as low as 6.22, with a median of 12.39.
Investors could also keep in mind United Fire Group (UFCS - Free Report) , an Insurance - Property and Casualty stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
United Fire Group also has a P/B ratio of 0.95 compared to its industry's price-to-book ratio of 1.65. Over the past year, its P/B ratio has been as high as 0.99, as low as 0.70, with a median of 0.81.
Value investors will likely look at more than just these metrics, but the above data helps show that Arch Capital Group and United Fire Group are likely undervalued currently. And when considering the strength of its earnings outlook, ACGL and UFCS sticks out as one of the market's strongest value stocks.
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Should Value Investors Buy Arch Capital Group (ACGL) 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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
Arch Capital Group (ACGL - Free Report) is a stock many investors are watching right now. ACGL is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 10.77 right now. For comparison, its industry sports an average P/E of 27.86. Over the past 52 weeks, ACGL's Forward P/E has been as high as 12.38 and as low as 9.40, with a median of 10.94.
We also note that ACGL holds a PEG ratio of 1.08. 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. ACGL's industry currently sports an average PEG of 2.64. Over the last 12 months, ACGL's PEG has been as high as 1.24 and as low as 0.94, with a median of 1.09.
Finally, investors should note that ACGL has a P/CF ratio of 7.21. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 9.79. Within the past 12 months, ACGL's P/CF has been as high as 17.25 and as low as 6.22, with a median of 12.39.
Investors could also keep in mind United Fire Group (UFCS - Free Report) , an Insurance - Property and Casualty stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
United Fire Group also has a P/B ratio of 0.95 compared to its industry's price-to-book ratio of 1.65. Over the past year, its P/B ratio has been as high as 0.99, as low as 0.70, with a median of 0.81.
Value investors will likely look at more than just these metrics, but the above data helps show that Arch Capital Group and United Fire Group are likely undervalued currently. And when considering the strength of its earnings outlook, ACGL and UFCS sticks out as one of the market's strongest value stocks.