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Are Investors Undervaluing Arch Capital Group (ACGL) Right Now?
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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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company to watch right now is Arch Capital Group (ACGL - Free Report) . ACGL is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 9.83 right now. For comparison, its industry sports an average P/E of 27.35. Over the past 52 weeks, ACGL's Forward P/E has been as high as 12.41 and as low as 9.70, with a median of 10.51.
Finally, investors will want to recognize that ACGL has a P/CF ratio of 8.36. 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 12.89. Over the past year, ACGL's P/CF has been as high as 9.18 and as low as 5.78, with a median of 8.02.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Arch Capital Group is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ACGL feels like a great value stock at the moment.
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Are Investors Undervaluing Arch Capital Group (ACGL) Right Now?
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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company to watch right now is Arch Capital Group (ACGL - Free Report) . ACGL is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 9.83 right now. For comparison, its industry sports an average P/E of 27.35. Over the past 52 weeks, ACGL's Forward P/E has been as high as 12.41 and as low as 9.70, with a median of 10.51.
Finally, investors will want to recognize that ACGL has a P/CF ratio of 8.36. 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 12.89. Over the past year, ACGL's P/CF has been as high as 9.18 and as low as 5.78, with a median of 8.02.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Arch Capital Group is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ACGL feels like a great value stock at the moment.