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Are Investors Undervaluing Universal Insurance Holdings (UVE) Right Now?
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company to watch right now is Universal Insurance Holdings (UVE - Free Report) . UVE is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.
Another notable valuation metric for UVE is its P/B ratio of 1.46. The P/B ratio pits a stock's market value against 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 1.53. Within the past 52 weeks, UVE's P/B has been as high as 1.80 and as low as 1.19, with a median of 1.50.
Finally, we should also recognize that UVE has a P/CF ratio of 6.67. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 8. Over the past 52 weeks, UVE's P/CF has been as high as 7.64 and as low as 5.33, with a median of 6.28.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Universal Insurance Holdings is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, UVE feels like a great value stock at the moment.