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Is Radian (RDN) a Great Value Stock 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.

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 Radian (RDN - Free Report) . RDN is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 6.26, while its industry has an average P/E of 8.63. Over the last 12 months, RDN's Forward P/E has been as high as 11.87 and as low as 5.88, with a median of 7.53.

We should also highlight that RDN has a P/B ratio of 1.09. 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 1.23. 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 1.29.

Finally, investors will want to recognize that RDN has a P/CF ratio of 5.02. 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. RDN's current P/CF looks attractive when compared to its industry's average P/CF of 7.49. RDN's P/CF has been as high as 20.04 and as low as 5.02, with a median of 8.13, all within the past year.

Value investors will likely look at more than just these metrics, but the above data helps show that Radian is likely undervalued currently. And when considering the strength of its earnings outlook, RDN sticks out at as one of the market's strongest value stocks.


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