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Is RenaissanceRe (RNR) Stock Undervalued Right Now?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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.

RenaissanceRe (RNR - Free Report) is a stock many investors are watching right now. RNR is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 11.18. This compares to its industry's average Forward P/E of 27.68. Over the past year, RNR's Forward P/E has been as high as 19.97 and as low as -14.39, with a median of 13.13.

Investors will also notice that RNR has a PEG ratio of 1.18. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. RNR's PEG compares to its industry's average PEG of 3.15. Within the past year, RNR's PEG has been as high as 2.10 and as low as -1.51, with a median of 1.38.

We should also highlight that RNR has a P/B ratio of 1.32. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 1.45. Within the past 52 weeks, RNR's P/B has been as high as 1.41 and as low as 1.10, with a median of 1.29.

Value investors will likely look at more than just these metrics, but the above data helps show that RenaissanceRe is likely undervalued currently. And when considering the strength of its earnings outlook, RNR sticks out at as one of the market's strongest value stocks.




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