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AXS vs. CINF: Which Stock Should Value Investors Buy Now?
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Investors interested in Insurance - Property and Casualty stocks are likely familiar with Axis Capital (AXS - Free Report) and Cincinnati Financial (CINF - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, Axis Capital has a Zacks Rank of #2 (Buy), while Cincinnati Financial has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that AXS is likely seeing its earnings outlook improve to a greater extent. But this is just one factor that value investors are interested in.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
AXS currently has a forward P/E ratio of 7.09, while CINF has a forward P/E of 19.52. We also note that AXS has a PEG ratio of 0.26. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. CINF currently has a PEG ratio of 2.65.
Another notable valuation metric for AXS is its P/B ratio of 1.22. 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. By comparison, CINF has a P/B of 1.52.
These are just a few of the metrics contributing to AXS's Value grade of A and CINF's Value grade of C.
AXS stands above CINF thanks to its solid earnings outlook, and based on these valuation figures, we also feel that AXS is the superior value option right now.
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AXS vs. CINF: Which Stock Should Value Investors Buy Now?
Investors interested in Insurance - Property and Casualty stocks are likely familiar with Axis Capital (AXS - Free Report) and Cincinnati Financial (CINF - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, Axis Capital has a Zacks Rank of #2 (Buy), while Cincinnati Financial has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that AXS is likely seeing its earnings outlook improve to a greater extent. But this is just one factor that value investors are interested in.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
AXS currently has a forward P/E ratio of 7.09, while CINF has a forward P/E of 19.52. We also note that AXS has a PEG ratio of 0.26. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. CINF currently has a PEG ratio of 2.65.
Another notable valuation metric for AXS is its P/B ratio of 1.22. 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. By comparison, CINF has a P/B of 1.52.
These are just a few of the metrics contributing to AXS's Value grade of A and CINF's Value grade of C.
AXS stands above CINF thanks to its solid earnings outlook, and based on these valuation figures, we also feel that AXS is the superior value option right now.