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Are Investors Undervaluing Genworth Financial (GNW) Right Now?
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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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 Genworth Financial (GNW - Free Report) . GNW is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 4.72, while its industry has an average P/E of 9.21. GNW's Forward P/E has been as high as 5.32 and as low as 3.01, with a median of 4.16, 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. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. GNW has a P/S ratio of 0.3. This compares to its industry's average P/S of 0.84.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Genworth Financial is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, GNW feels like a great value stock at the moment.
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Are Investors Undervaluing Genworth Financial (GNW) Right Now?
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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 Genworth Financial (GNW - Free Report) . GNW is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 4.72, while its industry has an average P/E of 9.21. GNW's Forward P/E has been as high as 5.32 and as low as 3.01, with a median of 4.16, 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. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. GNW has a P/S ratio of 0.3. This compares to its industry's average P/S of 0.84.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Genworth Financial is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, GNW feels like a great value stock at the moment.