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Should Value Investors Buy Mercury General (MCY) Stock?
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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.
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 Mercury General (MCY - Free Report) . MCY is currently sporting a Zacks Rank #1 (Strong Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 12.08, which compares to its industry's average of 28.24. MCY's Forward P/E has been as high as 163.64 and as low as 6.83, with a median of 13.27, all within 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. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. MCY has a P/S ratio of 0.88. This compares to its industry's average P/S of 1.31.
Finally, we should also recognize that MCY has a P/CF ratio of 9.50. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 12.67. Over the past year, MCY's P/CF has been as high as 10.18 and as low as 4.83, with a median of 7.64.
Value investors will likely look at more than just these metrics, but the above data helps show that Mercury General is likely undervalued currently. And when considering the strength of its earnings outlook, MCY sticks out as one of the market's strongest value stocks.
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Should Value Investors Buy Mercury General (MCY) Stock?
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.
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 Mercury General (MCY - Free Report) . MCY is currently sporting a Zacks Rank #1 (Strong Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 12.08, which compares to its industry's average of 28.24. MCY's Forward P/E has been as high as 163.64 and as low as 6.83, with a median of 13.27, all within 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. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. MCY has a P/S ratio of 0.88. This compares to its industry's average P/S of 1.31.
Finally, we should also recognize that MCY has a P/CF ratio of 9.50. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 12.67. Over the past year, MCY's P/CF has been as high as 10.18 and as low as 4.83, with a median of 7.64.
Value investors will likely look at more than just these metrics, but the above data helps show that Mercury General is likely undervalued currently. And when considering the strength of its earnings outlook, MCY sticks out as one of the market's strongest value stocks.