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Are Investors Undervaluing Essent Group (ESNT) Right Now?
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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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One stock to keep an eye on is Essent Group (ESNT - Free Report) . ESNT is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 6.36. This compares to its industry's average Forward P/E of 7.70. Over the last 12 months, ESNT's Forward P/E has been as high as 9.68 and as low as 6.05, with a median of 7.79.
Investors should also note that ESNT holds a PEG ratio of 0.64. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. ESNT's PEG compares to its industry's average PEG of 0.77. ESNT's PEG has been as high as 0.97 and as low as 0.60, with a median of 0.78, all within the past year.
Investors should also recognize that ESNT has a P/B ratio of 1.09. 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. This stock's P/B looks solid versus its industry's average P/B of 1.48. Over the past year, ESNT's P/B has been as high as 1.54 and as low as 1.03, with a median of 1.25.
Finally, investors should note that ESNT has a P/CF ratio of 6.37. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. ESNT's P/CF compares to its industry's average P/CF of 14.37. Within the past 12 months, ESNT's P/CF has been as high as 14.08 and as low as 6.06, with a median of 8.58.
Value investors will likely look at more than just these metrics, but the above data helps show that Essent Group is likely undervalued currently. And when considering the strength of its earnings outlook, ESNT sticks out at as one of the market's strongest value stocks.
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Are Investors Undervaluing Essent Group (ESNT) 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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One stock to keep an eye on is Essent Group (ESNT - Free Report) . ESNT is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 6.36. This compares to its industry's average Forward P/E of 7.70. Over the last 12 months, ESNT's Forward P/E has been as high as 9.68 and as low as 6.05, with a median of 7.79.
Investors should also note that ESNT holds a PEG ratio of 0.64. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. ESNT's PEG compares to its industry's average PEG of 0.77. ESNT's PEG has been as high as 0.97 and as low as 0.60, with a median of 0.78, all within the past year.
Investors should also recognize that ESNT has a P/B ratio of 1.09. 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. This stock's P/B looks solid versus its industry's average P/B of 1.48. Over the past year, ESNT's P/B has been as high as 1.54 and as low as 1.03, with a median of 1.25.
Finally, investors should note that ESNT has a P/CF ratio of 6.37. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. ESNT's P/CF compares to its industry's average P/CF of 14.37. Within the past 12 months, ESNT's P/CF has been as high as 14.08 and as low as 6.06, with a median of 8.58.
Value investors will likely look at more than just these metrics, but the above data helps show that Essent Group is likely undervalued currently. And when considering the strength of its earnings outlook, ESNT sticks out at as one of the market's strongest value stocks.