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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.
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.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on is NMI (NMIH - Free Report) . NMIH is currently holding a Zacks Rank #2 (Buy) and a Value grade of A.
NMIH is also sporting a PEG ratio of 1.11. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. NMIH's industry has an average PEG of 3.13 right now. Over the last 12 months, NMIH's PEG has been as high as 1.46 and as low as 0.80, with a median of 1.11.
Another notable valuation metric for NMIH is its P/B ratio of 1.26. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. NMIH's current P/B looks attractive when compared to its industry's average P/B of 1.40. Within the past 52 weeks, NMIH's P/B has been as high as 1.62 and as low as 1.10, with a median of 1.30.
Finally, investors will want to recognize that NMIH has a P/CF ratio of 8.06. 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. NMIH's current P/CF looks attractive when compared to its industry's average P/CF of 9.99. Over the past year, NMIH's P/CF has been as high as 9.37 and as low as 6.79, with a median of 8.04.
These figures are just a handful of the metrics value investors tend to look at, but they help show that NMI is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, NMIH feels like a great value stock at the moment.
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Are Investors Undervaluing NMI (NMIH) 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.
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.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on is NMI (NMIH - Free Report) . NMIH is currently holding a Zacks Rank #2 (Buy) and a Value grade of A.
NMIH is also sporting a PEG ratio of 1.11. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. NMIH's industry has an average PEG of 3.13 right now. Over the last 12 months, NMIH's PEG has been as high as 1.46 and as low as 0.80, with a median of 1.11.
Another notable valuation metric for NMIH is its P/B ratio of 1.26. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. NMIH's current P/B looks attractive when compared to its industry's average P/B of 1.40. Within the past 52 weeks, NMIH's P/B has been as high as 1.62 and as low as 1.10, with a median of 1.30.
Finally, investors will want to recognize that NMIH has a P/CF ratio of 8.06. 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. NMIH's current P/CF looks attractive when compared to its industry's average P/CF of 9.99. Over the past year, NMIH's P/CF has been as high as 9.37 and as low as 6.79, with a median of 8.04.
These figures are just a handful of the metrics value investors tend to look at, but they help show that NMI is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, NMIH feels like a great value stock at the moment.