We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Should Value Investors Buy Universal Insurance Holdings (UVE) Stock?
Read MoreHide Full Article
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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 value investors might notice is Universal Insurance Holdings (UVE - Free Report) . UVE is currently holding a Zacks Rank #1 (Strong Buy) and a Value grade of A. The stock is trading with P/E ratio of 9.17 right now. For comparison, its industry sports an average P/E of 25.44. Over the past year, UVE's Forward P/E has been as high as 12.67 and as low as 6.58, with a median of 8.58.
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 preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. UVE has a P/S ratio of 0.64. This compares to its industry's average P/S of 1.14.
Finally, investors will want to recognize that UVE has a P/CF ratio of 9.67. 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. This stock's P/CF looks attractive against its industry's average P/CF of 10.76. UVE's P/CF has been as high as 10.53 and as low as 5.48, with a median of 8.73, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Universal Insurance Holdings is likely undervalued currently. And when considering the strength of its earnings outlook, UVE sticks out as one of the market's strongest value stocks.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
View the Zacks #1 Rank List
Image: Bigstock
Should Value Investors Buy Universal Insurance Holdings (UVE) 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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 value investors might notice is Universal Insurance Holdings (UVE - Free Report) . UVE is currently holding a Zacks Rank #1 (Strong Buy) and a Value grade of A. The stock is trading with P/E ratio of 9.17 right now. For comparison, its industry sports an average P/E of 25.44. Over the past year, UVE's Forward P/E has been as high as 12.67 and as low as 6.58, with a median of 8.58.
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 preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. UVE has a P/S ratio of 0.64. This compares to its industry's average P/S of 1.14.
Finally, investors will want to recognize that UVE has a P/CF ratio of 9.67. 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. This stock's P/CF looks attractive against its industry's average P/CF of 10.76. UVE's P/CF has been as high as 10.53 and as low as 5.48, with a median of 8.73, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Universal Insurance Holdings is likely undervalued currently. And when considering the strength of its earnings outlook, UVE sticks out as one of the market's strongest value stocks.