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Should Value Investors Buy Donegal Group (DGICA) Stock?
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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.
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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.
One company to watch right now is Donegal Group (DGICA - Free Report) . DGICA is currently sporting a Zacks Rank #1 (Strong Buy) and an A for Value.
We should also highlight that DGICA has a P/B ratio of 1.16. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. DGICA's current P/B looks attractive when compared to its industry's average P/B of 1.57. Over the past year, DGICA's P/B has been as high as 1.28 and as low as 0.93, with a median of 1.08.
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. DGICA has a P/S ratio of 0.71. This compares to its industry's average P/S of 1.27.
Finally, investors will want to recognize that DGICA has a P/CF ratio of 6.98. 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. DGICA's P/CF compares to its industry's average P/CF of 13.05. Over the past year, DGICA's P/CF has been as high as 37.36 and as low as 6.05, with a median of 8.11.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Donegal Group is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, DGICA feels like a great value stock at the moment.
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Should Value Investors Buy Donegal Group (DGICA) Stock?
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.
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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.
One company to watch right now is Donegal Group (DGICA - Free Report) . DGICA is currently sporting a Zacks Rank #1 (Strong Buy) and an A for Value.
We should also highlight that DGICA has a P/B ratio of 1.16. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. DGICA's current P/B looks attractive when compared to its industry's average P/B of 1.57. Over the past year, DGICA's P/B has been as high as 1.28 and as low as 0.93, with a median of 1.08.
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. DGICA has a P/S ratio of 0.71. This compares to its industry's average P/S of 1.27.
Finally, investors will want to recognize that DGICA has a P/CF ratio of 6.98. 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. DGICA's P/CF compares to its industry's average P/CF of 13.05. Over the past year, DGICA's P/CF has been as high as 37.36 and as low as 6.05, with a median of 8.11.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Donegal Group is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, DGICA feels like a great value stock at the moment.