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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 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 value investors might notice is Cigna (CI - Free Report) . CI is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.
We should also highlight that CI has a P/B ratio of 1.93. 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. CI's current P/B looks attractive when compared to its industry's average P/B of 2.11. Over the past year, CI's P/B has been as high as 1.93 and as low as 1.34, with a median of 1.64.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. CI has a P/S ratio of 0.49. This compares to its industry's average P/S of 0.83.
Another great Insurance - Multi line stock you could consider is Radian Group (RDN - Free Report) , which is a # 1 (Strong Buy) stock with a Value Score of A.
Radian Group is currently trading with a Forward P/E ratio of 6.75 while its PEG ratio sits at 1.35. Both of the company's metrics compare favorably to its industry's average P/E of 10.39 and average PEG ratio of 1.03.
Over the past year, RDN's P/E has been as high as 8.37, as low as 5.53, with a median of 6.89; its PEG ratio has been as high as 1.67, as low as 1.11, with a median of 0.93 during the same time period.
Radian Group sports a P/B ratio of 1.03 as well; this compares to its industry's price-to-book ratio of 2.11. In the past 52 weeks, RDN's P/B has been as high as 1.07, as low as 0.76, with a median of 0.95.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Cigna and Radian Group are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CI and RDN feels like a great value stock at the moment.
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Is Cigna (CI) a Great Value Stock 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 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 value investors might notice is Cigna (CI - Free Report) . CI is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.
We should also highlight that CI has a P/B ratio of 1.93. 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. CI's current P/B looks attractive when compared to its industry's average P/B of 2.11. Over the past year, CI's P/B has been as high as 1.93 and as low as 1.34, with a median of 1.64.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. CI has a P/S ratio of 0.49. This compares to its industry's average P/S of 0.83.
Another great Insurance - Multi line stock you could consider is Radian Group (RDN - Free Report) , which is a # 1 (Strong Buy) stock with a Value Score of A.
Radian Group is currently trading with a Forward P/E ratio of 6.75 while its PEG ratio sits at 1.35. Both of the company's metrics compare favorably to its industry's average P/E of 10.39 and average PEG ratio of 1.03.
Over the past year, RDN's P/E has been as high as 8.37, as low as 5.53, with a median of 6.89; its PEG ratio has been as high as 1.67, as low as 1.11, with a median of 0.93 during the same time period.
Radian Group sports a P/B ratio of 1.03 as well; this compares to its industry's price-to-book ratio of 2.11. In the past 52 weeks, RDN's P/B has been as high as 1.07, as low as 0.76, with a median of 0.95.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Cigna and Radian Group are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CI and RDN feels like a great value stock at the moment.