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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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. 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 company to watch right now is Fidelity National Financial (FNF - Free Report) . FNF is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. FNF has a P/S ratio of 0.91. This compares to its industry's average P/S of 1.09.
Finally, investors should note that FNF has a P/CF ratio of 4.57. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. FNF's current P/CF looks attractive when compared to its industry's average P/CF of 7.16. Over the past year, FNF's P/CF has been as high as 7.17 and as low as 3.87, with a median of 4.68.
Investors could also keep in mind Stewart Information Services (STC - Free Report) , an Insurance - Property and Casualty stock with a Zacks Rank of # 1 (Strong Buy) and Value grade of A.
Furthermore, Stewart Information Services holds a P/B ratio of 1.42 and its industry's price-to-book ratio is 1.36. STC's P/B has been as high as 1.77, as low as 1.29, with a median of 1.47 over the past 12 months.
Value investors will likely look at more than just these metrics, but the above data helps show that Fidelity National Financial and Stewart Information Services are likely undervalued currently. And when considering the strength of its earnings outlook, FNF and STC sticks out as one of the market's strongest value stocks.
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Are These Finance Stocks Undervalued Right Now?
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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. 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 company to watch right now is Fidelity National Financial (FNF - Free Report) . FNF is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. FNF has a P/S ratio of 0.91. This compares to its industry's average P/S of 1.09.
Finally, investors should note that FNF has a P/CF ratio of 4.57. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. FNF's current P/CF looks attractive when compared to its industry's average P/CF of 7.16. Over the past year, FNF's P/CF has been as high as 7.17 and as low as 3.87, with a median of 4.68.
Investors could also keep in mind Stewart Information Services (STC - Free Report) , an Insurance - Property and Casualty stock with a Zacks Rank of # 1 (Strong Buy) and Value grade of A.
Furthermore, Stewart Information Services holds a P/B ratio of 1.42 and its industry's price-to-book ratio is 1.36. STC's P/B has been as high as 1.77, as low as 1.29, with a median of 1.47 over the past 12 months.
Value investors will likely look at more than just these metrics, but the above data helps show that Fidelity National Financial and Stewart Information Services are likely undervalued currently. And when considering the strength of its earnings outlook, FNF and STC sticks out as one of the market's strongest value stocks.