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Should Value Investors Buy These Finance Stocks?

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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, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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 stock to keep an eye on is Assurant (AIZ - Free Report) . AIZ is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.

AIZ is also sporting a PEG ratio of 0.89. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. AIZ's PEG compares to its industry's average PEG of 1.20. Within the past year, AIZ's PEG has been as high as 1 and as low as 0.72, with a median of 0.80.

Finally, our model also underscores that AIZ has a P/CF ratio of 6.23. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. AIZ's current P/CF looks attractive when compared to its industry's average P/CF of 13.08. Within the past 12 months, AIZ's P/CF has been as high as 16.95 and as low as 5.64, with a median of 14.98.

Another great Insurance - Multi line stock you could consider is CNO Financial Group (CNO - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.

Furthermore, CNO Financial Group holds a P/B ratio of 0.61 and its industry's price-to-book ratio is 1.55. CNO's P/B has been as high as 0.75, as low as 0.52, with a median of 0.59 over the past 12 months.

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


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CNO Financial Group, Inc. (CNO) - free report >>

Assurant, Inc. (AIZ) - free report >>

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