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Should Value Investors Buy Fairfax Financial (FRFHF) 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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 Fairfax Financial (FRFHF - Free Report) . FRFHF is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.
Another valuation metric that we should highlight is FRFHF's P/B ratio of 1.29. 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. This stock's P/B looks solid versus its industry's average P/B of 1.65. Within the past 52 weeks, FRFHF's P/B has been as high as 1.29 and as low as 0.93, with a median of 1.10.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. FRFHF has a P/S ratio of 1.14. This compares to its industry's average P/S of 1.28.
Finally, we should also recognize that FRFHF has a P/CF ratio of 7.54. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 10.19. Over the past year, FRFHF's P/CF has been as high as 7.58 and as low as 5.04, with a median of 6.61.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Fairfax Financial is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, FRFHF feels like a great value stock at the moment.
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Should Value Investors Buy Fairfax Financial (FRFHF) 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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 Fairfax Financial (FRFHF - Free Report) . FRFHF is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.
Another valuation metric that we should highlight is FRFHF's P/B ratio of 1.29. 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. This stock's P/B looks solid versus its industry's average P/B of 1.65. Within the past 52 weeks, FRFHF's P/B has been as high as 1.29 and as low as 0.93, with a median of 1.10.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. FRFHF has a P/S ratio of 1.14. This compares to its industry's average P/S of 1.28.
Finally, we should also recognize that FRFHF has a P/CF ratio of 7.54. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 10.19. Over the past year, FRFHF's P/CF has been as high as 7.58 and as low as 5.04, with a median of 6.61.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Fairfax Financial is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, FRFHF feels like a great value stock at the moment.