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Are Investors Undervaluing Prudential Financial (PRU) Right Now?
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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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 Prudential Financial (PRU - Free Report) . PRU is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 8.62, while its industry has an average P/E of 9.63. Over the past year, PRU's Forward P/E has been as high as 10.48 and as low as 7.31, with a median of 8.64.
PRU is also sporting a PEG ratio of 0.99. 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. PRU's PEG compares to its industry's average PEG of 1.57. Within the past year, PRU's PEG has been as high as 1.13 and as low as 0.81, with a median of 0.96.
Investors should also recognize that PRU has a P/B ratio of 2.23. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. PRU's current P/B looks attractive when compared to its industry's average P/B of 3.11. PRU's P/B has been as high as 2.39 and as low as 0.62, with a median of 1.24, over the past year.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. PRU has a P/S ratio of 0.6. This compares to its industry's average P/S of 0.89.
Zurich Insurance Group (ZURVY - Free Report) may be another strong Insurance - Multi line stock to add to your shortlist. ZURVY is a # 2 (Buy) stock with a Value grade of A.
Shares of Zurich Insurance Group are currently trading at a forward earnings multiple of 11.34 and a PEG ratio of 1.50 compared to its industry's P/E and PEG ratios of 9.63 and 1.57, respectively.
ZURVY's price-to-earnings ratio has been as high as 15.14 and as low as 9.97, with a median of 11.59, while its PEG ratio has been as high as 2.03 and as low as 1.05, with a median of 1.34, all within the past year.
Zurich Insurance Group sports a P/B ratio of 2.48 as well; this compares to its industry's price-to-book ratio of 3.11. In the past 52 weeks, ZURVY's P/B has been as high as 2.57, as low as 1.60, with a median of 2.18.
Value investors will likely look at more than just these metrics, but the above data helps show that Prudential Financial and Zurich Insurance Group are likely undervalued currently. And when considering the strength of its earnings outlook, PRU and ZURVY sticks out as one of the market's strongest value stocks.
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Are Investors Undervaluing Prudential Financial (PRU) Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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 Prudential Financial (PRU - Free Report) . PRU is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 8.62, while its industry has an average P/E of 9.63. Over the past year, PRU's Forward P/E has been as high as 10.48 and as low as 7.31, with a median of 8.64.
PRU is also sporting a PEG ratio of 0.99. 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. PRU's PEG compares to its industry's average PEG of 1.57. Within the past year, PRU's PEG has been as high as 1.13 and as low as 0.81, with a median of 0.96.
Investors should also recognize that PRU has a P/B ratio of 2.23. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. PRU's current P/B looks attractive when compared to its industry's average P/B of 3.11. PRU's P/B has been as high as 2.39 and as low as 0.62, with a median of 1.24, over the past year.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. PRU has a P/S ratio of 0.6. This compares to its industry's average P/S of 0.89.
Zurich Insurance Group (ZURVY - Free Report) may be another strong Insurance - Multi line stock to add to your shortlist. ZURVY is a # 2 (Buy) stock with a Value grade of A.
Shares of Zurich Insurance Group are currently trading at a forward earnings multiple of 11.34 and a PEG ratio of 1.50 compared to its industry's P/E and PEG ratios of 9.63 and 1.57, respectively.
ZURVY's price-to-earnings ratio has been as high as 15.14 and as low as 9.97, with a median of 11.59, while its PEG ratio has been as high as 2.03 and as low as 1.05, with a median of 1.34, all within the past year.
Zurich Insurance Group sports a P/B ratio of 2.48 as well; this compares to its industry's price-to-book ratio of 3.11. In the past 52 weeks, ZURVY's P/B has been as high as 2.57, as low as 1.60, with a median of 2.18.
Value investors will likely look at more than just these metrics, but the above data helps show that Prudential Financial and Zurich Insurance Group are likely undervalued currently. And when considering the strength of its earnings outlook, PRU and ZURVY sticks out as one of the market's strongest value stocks.