Back to top

Should Value Investors Buy RenaissanceRe (RNR) Stock?

Read MoreHide Full Article

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

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.

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 value investors might notice is RenaissanceRe (RNR - Free Report) . RNR is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 10.70. This compares to its industry's average Forward P/E of 27.44. Over the past 52 weeks, RNR's Forward P/E has been as high as 19.97 and as low as -14.39, with a median of 13.

We also note that RNR holds a PEG ratio of 1.13. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. RNR's industry currently sports an average PEG of 3.12. Within the past year, RNR's PEG has been as high as 2.10 and as low as -1.51, with a median of 1.37.

Investors should also recognize that RNR has a P/B ratio of 1.22. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. RNR's current P/B looks attractive when compared to its industry's average P/B of 1.47. Within the past 52 weeks, RNR's P/B has been as high as 1.41 and as low as 1.14, with a median of 1.28.

These are only a few of the key metrics included in RenaissanceRe's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, RNR looks like an impressive value stock at the moment.




In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


RenaissanceRe Holdings Ltd. (RNR) - free report >>

More from Zacks Tale of the Tape

You May Like