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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.
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 company value investors might notice is Argo Group . ARGO is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 9.74 right now. For comparison, its industry sports an average P/E of 28.66. Over the past year, ARGO's Forward P/E has been as high as 16.48 and as low as 8.80, with a median of 13.35.
We should also highlight that ARGO has a P/B ratio of 1.04. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. ARGO's current P/B looks attractive when compared to its industry's average P/B of 1.29. Over the past year, ARGO's P/B has been as high as 1.32 and as low as 0.82, with a median of 1.05.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. ARGO has a P/S ratio of 0.73. This compares to its industry's average P/S of 1.
Universal Insurance Holdings (UVE - Free Report) may be another strong Insurance - Property and Casualty stock to add to your shortlist. UVE is a # 2 (Buy) stock with a Value grade of A.
Additionally, Universal Insurance Holdings has a P/B ratio of 0.99 while its industry's price-to-book ratio sits at 1.29. For UVE, this valuation metric has been as high as 1.41, as low as 0.82, with a median of 0.95 over the past year.
These are just a handful of the figures considered in Argo Group and Universal Insurance Holdings's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that ARGO and UVE is an impressive value stock right now.
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Is Argo Group (ARGO) Stock Undervalued Right Now?
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.
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 company value investors might notice is Argo Group . ARGO is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 9.74 right now. For comparison, its industry sports an average P/E of 28.66. Over the past year, ARGO's Forward P/E has been as high as 16.48 and as low as 8.80, with a median of 13.35.
We should also highlight that ARGO has a P/B ratio of 1.04. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. ARGO's current P/B looks attractive when compared to its industry's average P/B of 1.29. Over the past year, ARGO's P/B has been as high as 1.32 and as low as 0.82, with a median of 1.05.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. ARGO has a P/S ratio of 0.73. This compares to its industry's average P/S of 1.
Universal Insurance Holdings (UVE - Free Report) may be another strong Insurance - Property and Casualty stock to add to your shortlist. UVE is a # 2 (Buy) stock with a Value grade of A.
Additionally, Universal Insurance Holdings has a P/B ratio of 0.99 while its industry's price-to-book ratio sits at 1.29. For UVE, this valuation metric has been as high as 1.41, as low as 0.82, with a median of 0.95 over the past year.
These are just a handful of the figures considered in Argo Group and Universal Insurance Holdings's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that ARGO and UVE is an impressive value stock right now.