Yahoo Finance Is Axis Capital Holdings (AXS) 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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. 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.
Axis Capital Holdings (AXS) is a stock many investors are watching right now. AXS is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.
We also note that AXS holds a PEG ratio of 1.17. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. AXS's industry has an average PEG of 2.43 right now. AXS's PEG has been as high as 1.98 and as low as 1.14, with a median of 1.32, all within the past year.
Investors should also recognize that AXS has a P/B ratio of 1.06. Investors use the P/B ratio to look at a stock's market value versus 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 1.50. Within the past 52 weeks, AXS's P/B has been as high as 1.31 and as low as 1, with a median of 1.06.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. AXS has a P/S ratio of 0.84. This compares to its industry's average P/S of 1.1.
Finally, investors will want to recognize that AXS has a P/CF ratio of 7.58. 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. This stock's P/CF looks attractive against its industry's average P/CF of 8.89. AXS's P/CF has been as high as 17.12 and as low as 7.23, with a median of 11.27, all within the past year.
The Travelers Companies (TRV) may be another strong Insurance - Property and Casualty stock to add to your shortlist. TRV is a # 2 (Buy) stock with a Value grade of A.
Shares of The Travelers Companies are currently trading at a forward earnings multiple of 11.45 and a PEG ratio of 1.13 compared to its industry's P/E and PEG ratios of 26.02 and 2.43, respectively.
TRV's Forward P/E has been as high as 17.36 and as low as 10.11, with a median of 11.35. During the same time period, its PEG ratio has been as high as 2.59, as low as 0.99, with a median of 1.15.
The Travelers Companies sports a P/B ratio of 2.20 as well; this compares to its industry's price-to-book ratio of 1.50. In the past 52 weeks, TRV's P/B has been as high as 2.21, as low as 1.67, with a median of 1.83.
These are only a few of the key metrics included in Axis Capital Holdings and The Travelers Companies strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, AXS and TRV look like an impressive value stock at the moment.
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Axis Capital Holdings Limited (AXS) : Free Stock Analysis Report
The Travelers Companies, Inc. (TRV) : Free Stock Analysis Report
