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Are Investors Undervaluing RenaissanceRe (RNR) 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.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. 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.
RenaissanceRe (RNR - Free Report) is a stock many investors are watching right now. RNR is currently sporting a Zacks Rank #2 (Buy) and an A for Value.
Investors will also notice that RNR has a PEG ratio of 1.72. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. RNR's industry has an average PEG of 4.45 right now. Over the past 52 weeks, RNR's PEG has been as high as 3.67 and as low as 1.39, with a median of 1.84.
We should also highlight that RNR has a P/B ratio of 1.14. The P/B ratio pits a stock's market value against 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 1.36. Over the past year, RNR's P/B has been as high as 1.49 and as low as 1.09, with a median of 1.24.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's 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. RNR has a P/S ratio of 0.98. This compares to its industry's average P/S of 1.25.
Finally, we should also recognize that RNR has a P/CF ratio of 5.13. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. RNR's P/CF compares to its industry's average P/CF of 11.67. Within the past 12 months, RNR's P/CF has been as high as 6.44 and as low as 3.18, with a median of 5.26.
Another great Insurance - Property and Casualty stock you could consider is Universal Insurance Holdings (UVE - Free Report) , which is a Zacks Rank of #1 (Strong Buy) stock with a Value Score of A.
Furthermore, Universal Insurance Holdings holds a P/B ratio of 1.58 and its industry's price-to-book ratio is 1.36. UVE's P/B has been as high as 1.89, as low as 1.19, with a median of 1.54 over the past 12 months.
These figures are just a handful of the metrics value investors tend to look at, but they help show that RenaissanceRe and Universal Insurance Holdings are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, RNR and UVE feels like a great value stock at the moment.
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Are Investors Undervaluing RenaissanceRe (RNR) 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.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. 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.
RenaissanceRe (RNR - Free Report) is a stock many investors are watching right now. RNR is currently sporting a Zacks Rank #2 (Buy) and an A for Value.
Investors will also notice that RNR has a PEG ratio of 1.72. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. RNR's industry has an average PEG of 4.45 right now. Over the past 52 weeks, RNR's PEG has been as high as 3.67 and as low as 1.39, with a median of 1.84.
We should also highlight that RNR has a P/B ratio of 1.14. The P/B ratio pits a stock's market value against 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 1.36. Over the past year, RNR's P/B has been as high as 1.49 and as low as 1.09, with a median of 1.24.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's 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. RNR has a P/S ratio of 0.98. This compares to its industry's average P/S of 1.25.
Finally, we should also recognize that RNR has a P/CF ratio of 5.13. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. RNR's P/CF compares to its industry's average P/CF of 11.67. Within the past 12 months, RNR's P/CF has been as high as 6.44 and as low as 3.18, with a median of 5.26.
Another great Insurance - Property and Casualty stock you could consider is Universal Insurance Holdings (UVE - Free Report) , which is a Zacks Rank of #1 (Strong Buy) stock with a Value Score of A.
Furthermore, Universal Insurance Holdings holds a P/B ratio of 1.58 and its industry's price-to-book ratio is 1.36. UVE's P/B has been as high as 1.89, as low as 1.19, with a median of 1.54 over the past 12 months.
These figures are just a handful of the metrics value investors tend to look at, but they help show that RenaissanceRe and Universal Insurance Holdings are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, RNR and UVE feels like a great value stock at the moment.