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Are Investors Undervaluing Hannover Ruck (HVRRY) Right Now?

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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, 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.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One company value investors might notice is Hannover Ruck (HVRRY - Free Report) . HVRRY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 9.73. This compares to its industry's average Forward P/E of 20.49. Over the past year, HVRRY's Forward P/E has been as high as 16.35 and as low as 9.48, with a median of 12.23.

Finally, we should also recognize that HVRRY has a P/CF ratio of 12.72. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 21.03. Over the past year, HVRRY's P/CF has been as high as 15.62 and as low as 11.39, with a median of 13.60.

Value investors will likely look at more than just these metrics, but the above data helps show that Hannover Ruck is likely undervalued currently. And when considering the strength of its earnings outlook, HVRRY sticks out at as one of the market's strongest value stocks.


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