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Is Donegal Group (DGICA) 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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 to watch right now is Donegal Group (DGICA - Free Report) . DGICA is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock holds a P/E ratio of 12.55, while its industry has an average P/E of 27.36. Over the last 12 months, DGICA's Forward P/E has been as high as 22.22 and as low as 10.55, with a median of 15.91.
Investors should also recognize that DGICA has a P/B ratio of 0.88. The P/B ratio is used to compare a stock's market value with 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 1.42. DGICA's P/B has been as high as 1.01 and as low as 0.74, with a median of 0.94, over the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. DGICA has a P/S ratio of 0.51. This compares to its industry's average P/S of 0.73.
Finally, investors should note that DGICA has a P/CF ratio of 6.14. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. DGICA's P/CF compares to its industry's average P/CF of 15.10. DGICA's P/CF has been as high as 23.32 and as low as 5.16, with a median of 14.79, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Donegal Group is likely undervalued currently. And when considering the strength of its earnings outlook, DGICA sticks out at as one of the market's strongest value stocks.
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Is Donegal Group (DGICA) a Great Value Stock Right Now?
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 to watch right now is Donegal Group (DGICA - Free Report) . DGICA is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock holds a P/E ratio of 12.55, while its industry has an average P/E of 27.36. Over the last 12 months, DGICA's Forward P/E has been as high as 22.22 and as low as 10.55, with a median of 15.91.
Investors should also recognize that DGICA has a P/B ratio of 0.88. The P/B ratio is used to compare a stock's market value with 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 1.42. DGICA's P/B has been as high as 1.01 and as low as 0.74, with a median of 0.94, over the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. DGICA has a P/S ratio of 0.51. This compares to its industry's average P/S of 0.73.
Finally, investors should note that DGICA has a P/CF ratio of 6.14. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. DGICA's P/CF compares to its industry's average P/CF of 15.10. DGICA's P/CF has been as high as 23.32 and as low as 5.16, with a median of 14.79, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Donegal Group is likely undervalued currently. And when considering the strength of its earnings outlook, DGICA sticks out at as one of the market's strongest value stocks.