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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 company value investors might notice is Radian (RDN - Free Report) . RDN 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 7.74, while its industry has an average P/E of 10.13. Over the past 52 weeks, RDN's Forward P/E has been as high as 11.87 and as low as 5.88, with a median of 7.84.
Investors should also recognize that RDN has a P/B ratio of 1.37. 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 stock's P/B looks attractive against its industry's average P/B of 1.48. Within the past 52 weeks, RDN's P/B has been as high as 1.67 and as low as 1.01, with a median of 1.36.
Finally, our model also underscores that RDN has a P/CF ratio of 6.69. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 9.70. Over the past year, RDN's P/CF has been as high as 20.04 and as low as 5.24, with a median of 10.72.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Radian is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, RDN feels like a great value stock at the moment.
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Is Radian (RDN) Stock Undervalued Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 company value investors might notice is Radian (RDN - Free Report) . RDN 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 7.74, while its industry has an average P/E of 10.13. Over the past 52 weeks, RDN's Forward P/E has been as high as 11.87 and as low as 5.88, with a median of 7.84.
Investors should also recognize that RDN has a P/B ratio of 1.37. 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 stock's P/B looks attractive against its industry's average P/B of 1.48. Within the past 52 weeks, RDN's P/B has been as high as 1.67 and as low as 1.01, with a median of 1.36.
Finally, our model also underscores that RDN has a P/CF ratio of 6.69. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 9.70. Over the past year, RDN's P/CF has been as high as 20.04 and as low as 5.24, with a median of 10.72.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Radian is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, RDN feels like a great value stock at the moment.