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Should Value Investors Buy Allianz (ALIZY) Stock?

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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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 Allianz (ALIZY - Free Report) . ALIZY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.

Another notable valuation metric for ALIZY is its P/B ratio of 1.59. 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. This company's current P/B looks solid when compared to its industry's average P/B of 2.12. ALIZY's P/B has been as high as 1.73 and as low as 0.77, with a median of 1.31, 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 popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. ALIZY has a P/S ratio of 0.57. This compares to its industry's average P/S of 0.67.

Another great Insurance - Multi line stock you could consider is Radian Group (RDN - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.

Shares of Radian Group are currently trading at a forward earnings multiple of 7.68 and a PEG ratio of 1.54 compared to its industry's P/E and PEG ratios of 8.45 and 0.79, respectively.

Over the past year, RDN's P/E has been as high as 8.02, as low as 4.04, with a median of 6.35; its PEG ratio has been as high as 1.60, as low as 0.81, with a median of 2.45 during the same time period.

Furthermore, Radian Group holds a P/B ratio of 0.96 and its industry's price-to-book ratio is 2.12. RDN's P/B has been as high as 1.03, as low as 0.75, with a median of 0.88 over the past 12 months.

These are only a few of the key metrics included in Allianz and Radian Group strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, ALIZY and RDN look like an impressive value stock at the moment.


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