Should Value Investors Buy Old Republic International (ORI) Stock?

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore 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 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.

One company to watch right now is Old Republic International (ORI). ORI is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 8.97, while its industry has an average P/E of 9.61. Over the past 52 weeks, ORI's Forward P/E has been as high as 10.83 and as low as 7.75, with a median of 9.33.

We should also highlight that ORI has a P/B ratio of 1.06. 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. ORI's current P/B looks attractive when compared to its industry's average P/B of 2.20. Within the past 52 weeks, ORI's P/B has been as high as 1.28 and as low as 0.96, with a median of 1.13.

Finally, we should also recognize that ORI has a P/CF ratio of 6.90. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. ORI's current P/CF looks attractive when compared to its industry's average P/CF of 9.18. ORI's P/CF has been as high as 7.73 and as low as 4.28, with a median of 5.28, all within the past year.

These are just a handful of the figures considered in Old Republic International'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 ORI is an impressive value stock right now.

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