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Are Investors Undervaluing Universal Insurance Holdings (UVE) Right Now?
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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.
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.
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 stock to keep an eye on is Universal Insurance Holdings (UVE - Free Report) . UVE 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 9.17, while its industry has an average P/E of 26.28. Over the last 12 months, UVE's Forward P/E has been as high as 12.67 and as low as 6.58, with a median of 8.58.
Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by sales. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. UVE has a P/S ratio of 0.55. This compares to its industry's average P/S of 1.24.
Finally, investors should note that UVE has a P/CF ratio of 9.67. 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. UVE's current P/CF looks attractive when compared to its industry's average P/CF of 12.32. Within the past 12 months, UVE's P/CF has been as high as 10.53 and as low as 5.48, with a median of 8.73.
Value investors will likely look at more than just these metrics, but the above data helps show that Universal Insurance Holdings is likely undervalued currently. And when considering the strength of its earnings outlook, UVE sticks out as one of the market's strongest value stocks.
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Are Investors Undervaluing Universal Insurance Holdings (UVE) Right Now?
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.
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.
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 stock to keep an eye on is Universal Insurance Holdings (UVE - Free Report) . UVE 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 9.17, while its industry has an average P/E of 26.28. Over the last 12 months, UVE's Forward P/E has been as high as 12.67 and as low as 6.58, with a median of 8.58.
Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by sales. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. UVE has a P/S ratio of 0.55. This compares to its industry's average P/S of 1.24.
Finally, investors should note that UVE has a P/CF ratio of 9.67. 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. UVE's current P/CF looks attractive when compared to its industry's average P/CF of 12.32. Within the past 12 months, UVE's P/CF has been as high as 10.53 and as low as 5.48, with a median of 8.73.
Value investors will likely look at more than just these metrics, but the above data helps show that Universal Insurance Holdings is likely undervalued currently. And when considering the strength of its earnings outlook, UVE sticks out as one of the market's strongest value stocks.