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Is MGIC Investment (MTG) a Great Value Stock 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, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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.

MGIC Investment (MTG - Free Report) is a stock many investors are watching right now. MTG is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 5.49, which compares to its industry's average of 8.98. Over the last 12 months, MTG's Forward P/E has been as high as 8.56 and as low as 5.06, with a median of 6.47.

Another notable valuation metric for MTG is its P/B ratio of 0.85. 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. This stock's P/B looks solid versus its industry's average P/B of 2.08. MTG's P/B has been as high as 1.11 and as low as 0.77, with a median of 0.94, over the past year.

Finally, investors will want to recognize that MTG has a P/CF ratio of 4.88. 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. This stock's P/CF looks attractive against its industry's average P/CF of 8.81. MTG's P/CF has been as high as 8.60 and as low as 4.78, with a median of 6.17, all within the past year.

Investors could also keep in mind Ping An Insurance Co. of China (PNGAY - Free Report) , an Insurance - Multi line stock with a Zacks Rank of # 2 (Buy) and Value grade of A.

Ping An Insurance Co. of China also has a P/B ratio of 0.53 compared to its industry's price-to-book ratio of 2.08. Over the past year, its P/B ratio has been as high as 0.95, as low as 0.53, with a median of 0.76.

These figures are just a handful of the metrics value investors tend to look at, but they help show that MGIC Investment and Ping An Insurance Co. of China are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, MTG and PNGAY feels like a great value stock at the moment.


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