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Should Value Investors Buy Donegal Group (DGICA) Stock?
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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, 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.
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 #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 9.36. This compares to its industry's average Forward P/E of 27.69. Over the last 12 months, DGICA's Forward P/E has been as high as 18.88 and as low as 9.13, with a median of 14.42.
We should also highlight that DGICA has a P/B ratio of 1.16. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 1.49. Over the past 12 months, 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 0.72. This compares to its industry's average P/S of 1.23.
Finally, our model also underscores that DGICA has a P/CF ratio of 6.98. 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. DGICA's current P/CF looks attractive when compared to its industry's average P/CF of 13.07. 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 are only a few of the key metrics included in Donegal Group's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, DGICA looks like an impressive value stock at the moment.
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Should Value Investors Buy Donegal Group (DGICA) Stock?
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, 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.
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 #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 9.36. This compares to its industry's average Forward P/E of 27.69. Over the last 12 months, DGICA's Forward P/E has been as high as 18.88 and as low as 9.13, with a median of 14.42.
We should also highlight that DGICA has a P/B ratio of 1.16. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 1.49. Over the past 12 months, 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 0.72. This compares to its industry's average P/S of 1.23.
Finally, our model also underscores that DGICA has a P/CF ratio of 6.98. 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. DGICA's current P/CF looks attractive when compared to its industry's average P/CF of 13.07. 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 are only a few of the key metrics included in Donegal Group's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, DGICA looks like an impressive value stock at the moment.