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Are Investors Undervaluing W.R. Berkley (WRB) Right Now?

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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.

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.

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.

One stock to keep an eye on is W.R. Berkley (WRB - Free Report) . WRB is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 13.46 right now. For comparison, its industry sports an average P/E of 28.40. Over the last 12 months, WRB's Forward P/E has been as high as 15.21 and as low as 11.73, with a median of 12.90.

WRB is also sporting a PEG ratio of 1. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. WRB's industry currently sports an average PEG of 2.96. Within the past year, WRB's PEG has been as high as 1.69 and as low as 0.92, with a median of 1.38.

These are only a few of the key metrics included in W.R. Berkley'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, WRB looks like an impressive value stock at the moment.


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