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Should Value Investors Buy ANYWHERE RE INC (HOUS) 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.

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.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One stock to keep an eye on is ANYWHERE RE INC (HOUS - Free Report) . HOUS is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.

Another valuation metric that we should highlight is HOUS's P/B ratio of 0.28. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 0.63. HOUS's P/B has been as high as 0.47 and as low as 0.20, with a median of 0.32, over the past year.

Finally, our model also underscores that HOUS has a P/CF ratio of 5.59. 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. HOUS's current P/CF looks attractive when compared to its industry's average P/CF of 7.42. Within the past 12 months, HOUS's P/CF has been as high as 17.98 and as low as 2.27, with a median of 4.40.

These figures are just a handful of the metrics value investors tend to look at, but they help show that ANYWHERE RE INC is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, HOUS feels like a great value stock at the moment.


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