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.
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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.
The Hartford Financial Services Group (HIG) is a stock many investors are watching right now. HIG is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 8.31, while its industry has an average P/E of 9.97. Over the past 52 weeks, HIG's Forward P/E has been as high as 12.52 and as low as 8.07, with a median of 9.92.
Investors will also notice that HIG has a PEG ratio of 1.19. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. HIG's industry currently sports an average PEG of 1.26. Over the past 52 weeks, HIG's PEG has been as high as 1.79 and as low as 1.15, with a median of 1.42.
Another valuation metric that we should highlight is HIG's P/B ratio of 1.54. 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. HIG's current P/B looks attractive when compared to its industry's average P/B of 2.27. Within the past 52 weeks, HIG's P/B has been as high as 1.62 and as low as 1.26, with a median of 1.41.
Finally, investors will want to recognize that HIG has a P/CF ratio of 8.26. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 9.51. Within the past 12 months, HIG's P/CF has been as high as 9.28 and as low as 5.54, with a median of 7.58.
Investors could also keep in mind Old Republic International (ORI), an Insurance - Multi line stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Old Republic International also has a P/B ratio of 1.07 compared to its industry's price-to-book ratio of 2.27. Over the past year, its P/B ratio has been as high as 1.28, as low as 0.96, with a median of 1.13.
These are only a few of the key metrics included in The Hartford Financial Services Group and Old Republic International strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, HIG and ORI look like an impressive value stock at the moment.
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The Hartford Financial Services Group, Inc. (HIG) : Free Stock Analysis Report
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