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Is Radian (RDN) Stock Undervalued 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.

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 company to watch right now is Radian (RDN - Free Report) . RDN is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 7.39. This compares to its industry's average Forward P/E of 8.39. Over the past 52 weeks, RDN's Forward P/E has been as high as 8.48 and as low as 5.42, with a median of 7.53.

We should also highlight that RDN has a P/B ratio of 1.23. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. RDN's current P/B looks attractive when compared to its industry's average P/B of 1.44. Over the past year, RDN's P/B has been as high as 1.39 and as low as 0.95, with a median of 1.26.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Radian is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, RDN feels like a great value stock at the moment.


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