Yahoo Finance Are Investors Undervaluing Radian Group (RDN) 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.
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company to watch right now is Radian Group (RDN). RDN is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 8.18 right now. For comparison, its industry sports an average P/E of 8.67. Over the past 52 weeks, RDN's Forward P/E has been as high as 8.18 and as low as 4.04, with a median of 6.39.
Investors should also recognize that RDN has a P/B ratio of 1.02. 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 solid versus its industry's average P/B of 2.21. RDN's P/B has been as high as 1.03 and as low as 0.75, with a median of 0.88, over the past year.
Finally, investors should note that RDN has a P/CF ratio of 5.40. 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. RDN's current P/CF looks attractive when compared to its industry's average P/CF of 9.38. Over the past 52 weeks, RDN's P/CF has been as high as 5.40 and as low as 3.53, with a median of 4.43.
These are just a handful of the figures considered in Radian 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 RDN is an impressive value stock right now.
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Radian Group Inc. (RDN) : Free Stock Analysis Report
