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Is Donegal Group (DGICA) Stock Undervalued Right Now?
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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find 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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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.
Donegal Group (DGICA - Free Report) is a stock many investors are watching right now. DGICA is currently sporting a Zacks Rank #1 (Strong Buy) and an A for Value. The stock is trading with a P/E ratio of 9.36, which compares to its industry's average of 27.19. DGICA's Forward P/E has been as high as 18.88 and as low as 9.13, with a median of 14.42, all within the past year.
Another valuation metric that we should highlight is DGICA's P/B ratio of 1.16. 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 1.53. DGICA's P/B has been as high as 1.28 and as low as 0.93, with a median of 1.08, over the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. DGICA has a P/S ratio of 0.7. This compares to its industry's average P/S of 1.22.
Finally, investors will want to recognize that DGICA has a P/CF ratio of 6.98. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. DGICA's current P/CF looks attractive when compared to its industry's average P/CF of 12.67. 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.
If you're looking for another solid Insurance - Property and Casualty value stock, take a look at Universal Insurance Holdings (UVE - Free Report) . UVE is a Zacks Rank of #2 (Buy) stock with a Value score of A.
Additionally, Universal Insurance Holdings has a P/B ratio of 1.58 while its industry's price-to-book ratio sits at 1.53. For UVE, this valuation metric has been as high as 1.89, as low as 1.19, with a median of 1.54 over the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Donegal Group and Universal Insurance Holdings are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, DGICA and UVE feels like a great value stock at the moment.
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Is Donegal Group (DGICA) Stock Undervalued Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find 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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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.
Donegal Group (DGICA - Free Report) is a stock many investors are watching right now. DGICA is currently sporting a Zacks Rank #1 (Strong Buy) and an A for Value. The stock is trading with a P/E ratio of 9.36, which compares to its industry's average of 27.19. DGICA's Forward P/E has been as high as 18.88 and as low as 9.13, with a median of 14.42, all within the past year.
Another valuation metric that we should highlight is DGICA's P/B ratio of 1.16. 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 1.53. DGICA's P/B has been as high as 1.28 and as low as 0.93, with a median of 1.08, over the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. DGICA has a P/S ratio of 0.7. This compares to its industry's average P/S of 1.22.
Finally, investors will want to recognize that DGICA has a P/CF ratio of 6.98. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. DGICA's current P/CF looks attractive when compared to its industry's average P/CF of 12.67. 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.
If you're looking for another solid Insurance - Property and Casualty value stock, take a look at Universal Insurance Holdings (UVE - Free Report) . UVE is a Zacks Rank of #2 (Buy) stock with a Value score of A.
Additionally, Universal Insurance Holdings has a P/B ratio of 1.58 while its industry's price-to-book ratio sits at 1.53. For UVE, this valuation metric has been as high as 1.89, as low as 1.19, with a median of 1.54 over the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Donegal Group and Universal Insurance Holdings are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, DGICA and UVE feels like a great value stock at the moment.