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Should Value Investors Buy Essent Group (ESNT) Stock?
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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, 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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 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 is trading with a P/E ratio of 5.73, which compares to its industry's average of 8.69. Over the past 52 weeks, ESNT's Forward P/E has been as high as 7.93 and as low as 5.06, with a median of 6.02.
Investors will also notice that ESNT has a PEG ratio of 0.57. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. ESNT's PEG compares to its industry's average PEG of 0.68. ESNT's PEG has been as high as 0.79 and as low as 0.51, with a median of 0.60, all within the past year.
Investors should also recognize that ESNT has a P/B ratio of 0.94. 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. ESNT's current P/B looks attractive when compared to its industry's average P/B of 1.35. ESNT's P/B has been as high as 1.29 and as low as 0.87, with a median of 1.05, over the past year.
Finally, investors should note that ESNT has a P/CF ratio of 4.51. 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 6.11. Within the past 12 months, ESNT's P/CF has been as high as 7.71 and as low as 4.03, with a median of 5.05.
These are only a few of the key metrics included in Essent Group's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, ESNT looks like an impressive value stock at the moment.
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Should Value Investors Buy Essent Group (ESNT) Stock?
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, 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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 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 is trading with a P/E ratio of 5.73, which compares to its industry's average of 8.69. Over the past 52 weeks, ESNT's Forward P/E has been as high as 7.93 and as low as 5.06, with a median of 6.02.
Investors will also notice that ESNT has a PEG ratio of 0.57. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. ESNT's PEG compares to its industry's average PEG of 0.68. ESNT's PEG has been as high as 0.79 and as low as 0.51, with a median of 0.60, all within the past year.
Investors should also recognize that ESNT has a P/B ratio of 0.94. 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. ESNT's current P/B looks attractive when compared to its industry's average P/B of 1.35. ESNT's P/B has been as high as 1.29 and as low as 0.87, with a median of 1.05, over the past year.
Finally, investors should note that ESNT has a P/CF ratio of 4.51. 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 6.11. Within the past 12 months, ESNT's P/CF has been as high as 7.71 and as low as 4.03, with a median of 5.05.
These are only a few of the key metrics included in Essent Group's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, ESNT looks like an impressive value stock at the moment.