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Should Value Investors Buy Heritage Insurance (HRTG) 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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader 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 stock to keep an eye on is Heritage Insurance (HRTG - Free Report) . HRTG is currently holding a Zacks Rank #1 (Strong Buy) and a Value grade of A.
Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by 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. HRTG has a P/S ratio of 1.03. This compares to its industry's average P/S of 1.27.
Finally, we should also recognize that HRTG has a P/CF ratio of 7.53. 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 12.64. Over the past 52 weeks, HRTG's P/CF has been as high as 9.22 and as low as 3.66, with a median of 5.56.
Investors could also keep in mind The Travelers Companies (TRV - Free Report) , another Insurance - Property and Casualty stock with a Zacks Rank of #1 (Strong Buy) and Value grade of A.
Shares of The Travelers Companies currently hold a Forward P/E ratio of 11.60, and its PEG ratio is 2.87. In comparison, its industry sports average P/E and PEG ratios of 26.83 and 3.97.
TRV's price-to-earnings ratio has been as high as 14.64 and as low as 11.13, with a median of 12.44, while its PEG ratio has been as high as 4.80 and as low as 1.01, with a median of 2.83, all within the past year.
The Travelers Companies sports a P/B ratio of 2.11 as well; this compares to its industry's price-to-book ratio of 1.52. In the past 52 weeks, TRV's P/B has been as high as 2.22, as low as 1.85, with a median of 2.07.
These are only a few of the key metrics included in Heritage Insurance and The Travelers Companies strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, HRTG and TRV look like an impressive value stock at the moment.
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Should Value Investors Buy Heritage Insurance (HRTG) 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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader 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 stock to keep an eye on is Heritage Insurance (HRTG - Free Report) . HRTG is currently holding a Zacks Rank #1 (Strong Buy) and a Value grade of A.
Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by 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. HRTG has a P/S ratio of 1.03. This compares to its industry's average P/S of 1.27.
Finally, we should also recognize that HRTG has a P/CF ratio of 7.53. 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 12.64. Over the past 52 weeks, HRTG's P/CF has been as high as 9.22 and as low as 3.66, with a median of 5.56.
Investors could also keep in mind The Travelers Companies (TRV - Free Report) , another Insurance - Property and Casualty stock with a Zacks Rank of #1 (Strong Buy) and Value grade of A.
Shares of The Travelers Companies currently hold a Forward P/E ratio of 11.60, and its PEG ratio is 2.87. In comparison, its industry sports average P/E and PEG ratios of 26.83 and 3.97.
TRV's price-to-earnings ratio has been as high as 14.64 and as low as 11.13, with a median of 12.44, while its PEG ratio has been as high as 4.80 and as low as 1.01, with a median of 2.83, all within the past year.
The Travelers Companies sports a P/B ratio of 2.11 as well; this compares to its industry's price-to-book ratio of 1.52. In the past 52 weeks, TRV's P/B has been as high as 2.22, as low as 1.85, with a median of 2.07.
These are only a few of the key metrics included in Heritage Insurance and The Travelers Companies strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, HRTG and TRV look like an impressive value stock at the moment.