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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 stock to keep an eye on is Chubb Limited (CB). CB is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 10.84 right now. For comparison, its industry sports an average P/E of 23.80. Over the past 52 weeks, CB's Forward P/E has been as high as 16.31 and as low as 10.84, with a median of 13.52.
CB is also sporting a PEG ratio of 1.08. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. CB's PEG compares to its industry's average PEG of 2.05. Over the past 52 weeks, CB's PEG has been as high as 1.63 and as low as 1.08, with a median of 1.35.
Finally, we should also recognize that CB has a P/CF ratio of 9.92. 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 24.14. Over the past 52 weeks, CB's P/CF has been as high as 11.07 and as low as 8.06, with a median of 9.76.
If you're looking for another solid Insurance - Property and Casualty value stock, take a look at Everest Re Group (RE). RE is a # 2 (Buy) stock with a Value score of A.
Shares of Everest Re Group currently holds a Forward P/E ratio of 6.53, and its PEG ratio is 0.60. In comparison, its industry sports average P/E and PEG ratios of 23.80 and 2.05.
Over the last 12 months, RE's P/E has been as high as 9.82, as low as 6.53, with a median of 8.21, and its PEG ratio has been as high as 0.88, as low as 0.17, with a median of 0.77.
Everest Re Group also has a P/B ratio of 1.15 compared to its industry's price-to-book ratio of 1.30. Over the past year, its P/B ratio has been as high as 1.58, as low as 1, with a median of 1.17.
These are just a handful of the figures considered in Chubb Limited and Everest Re Group's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that CB and RE is an impressive value stock right now.
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