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Should Value Investors Buy Mercury General (MCY) Stock?
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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company to watch right now is Mercury General (MCY - Free Report) . MCY is currently sporting a Zacks Rank #1 (Strong Buy), as well as an A grade for Value. The stock holds a P/E ratio of 11.8, while its industry has an average P/E of 27.40. MCY's Forward P/E has been as high as 163.64 and as low as 6.83, with a median of 13.27, all within the past year.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. MCY has a P/S ratio of 0.73. This compares to its industry's average P/S of 1.29.
Finally, our model also underscores that MCY has a P/CF ratio of 8.94. 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 stock's P/CF looks attractive against its industry's average P/CF of 12.74. MCY's P/CF has been as high as 10.18 and as low as 4.83, with a median of 7.64, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Mercury General is likely undervalued currently. And when considering the strength of its earnings outlook, MCY sticks out as one of the market's strongest value stocks.
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Should Value Investors Buy Mercury General (MCY) Stock?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company to watch right now is Mercury General (MCY - Free Report) . MCY is currently sporting a Zacks Rank #1 (Strong Buy), as well as an A grade for Value. The stock holds a P/E ratio of 11.8, while its industry has an average P/E of 27.40. MCY's Forward P/E has been as high as 163.64 and as low as 6.83, with a median of 13.27, all within the past year.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. MCY has a P/S ratio of 0.73. This compares to its industry's average P/S of 1.29.
Finally, our model also underscores that MCY has a P/CF ratio of 8.94. 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 stock's P/CF looks attractive against its industry's average P/CF of 12.74. MCY's P/CF has been as high as 10.18 and as low as 4.83, with a median of 7.64, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Mercury General is likely undervalued currently. And when considering the strength of its earnings outlook, MCY sticks out as one of the market's strongest value stocks.