Yahoo Finance Should Value Investors Buy CNO Financial Group (CNO) Stock?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 stock to keep an eye on is CNO Financial Group (CNO). CNO is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.
Investors should also recognize that CNO has a P/B ratio of 2.04. 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 3.08. Over the past year, CNO's P/B has been as high as 2.10 and as low as 0.53, with a median of 0.92.
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 popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. CNO has a P/S ratio of 0.72. This compares to its industry's average P/S of 0.84.
Finally, investors should note that CNO has a P/CF ratio of 3.10. 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. CNO's P/CF compares to its industry's average P/CF of 10.92. Over the past year, CNO's P/CF has been as high as 4.31 and as low as 2.36, with a median of 3.06.
Another great Insurance - Multi line stock you could consider is Ping An Insurance Co. of China (PNGAY), which is a # 2 (Buy) stock with a Value Score of A.
Furthermore, Ping An Insurance Co. of China holds a P/B ratio of 0.87 and its industry's price-to-book ratio is 3.08. PNGAY's P/B has been as high as 0.95, as low as 0.43, with a median of 0.68 over the past 12 months.
These are only a few of the key metrics included in CNO Financial Group and Ping An Insurance Co. of China strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, CNO and PNGAY look like an impressive value stock at the moment.
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CNO Financial Group, Inc. (CNO) : Free Stock Analysis Report
Ping An Insurance Co. of China Ltd. (PNGAY) : Free Stock Analysis Report
