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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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 Allstate (ALL - Free Report) . ALL is currently sporting a Zacks Rank #1 (Strong Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 9.21 right now. For comparison, its industry sports an average P/E of 27.04. ALL's Forward P/E has been as high as 11.84 and as low as 8.78, with a median of 10.15, all within the past year.
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. ALL has a P/S ratio of 0.93. This compares to its industry's average P/S of 1.31.
Finally, investors will want to recognize that ALL has a P/CF ratio of 8.66. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 10.12. ALL's P/CF has been as high as 14.16 and as low as 8.07, with a median of 10.58, all within the past year.
Investors could also keep in mind Heritage Insurance (HRTG - Free Report) , another Insurance - Property and Casualty stock with a Zacks Rank of #1 (Strong Buy) and Value grade of A.
Heritage Insurance also has a P/B ratio of 2.30 compared to its industry's price-to-book ratio of 1.42. Over the past year, its P/B ratio has been as high as 2.45, as low as 1.03, with a median of 1.46.
These are only a few of the key metrics included in Allstate and Heritage Insurance strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, ALL and HRTG look like an impressive value stock at the moment.
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Should Value Investors Buy Allstate (ALL) 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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 Allstate (ALL - Free Report) . ALL is currently sporting a Zacks Rank #1 (Strong Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 9.21 right now. For comparison, its industry sports an average P/E of 27.04. ALL's Forward P/E has been as high as 11.84 and as low as 8.78, with a median of 10.15, all within the past year.
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. ALL has a P/S ratio of 0.93. This compares to its industry's average P/S of 1.31.
Finally, investors will want to recognize that ALL has a P/CF ratio of 8.66. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 10.12. ALL's P/CF has been as high as 14.16 and as low as 8.07, with a median of 10.58, all within the past year.
Investors could also keep in mind Heritage Insurance (HRTG - Free Report) , another Insurance - Property and Casualty stock with a Zacks Rank of #1 (Strong Buy) and Value grade of A.
Heritage Insurance also has a P/B ratio of 2.30 compared to its industry's price-to-book ratio of 1.42. Over the past year, its P/B ratio has been as high as 2.45, as low as 1.03, with a median of 1.46.
These are only a few of the key metrics included in Allstate and Heritage Insurance strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, ALL and HRTG look like an impressive value stock at the moment.