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.
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.
Axa (AXAHY) is a stock many investors are watching right now. AXAHY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 8.19. This compares to its industry's average Forward P/E of 8.76. AXAHY's Forward P/E has been as high as 9.12 and as low as 6.47, with a median of 7.93, all within the past year.
Investors should also recognize that AXAHY has a P/B ratio of 1.35. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 2.37. Over the past year, AXAHY's P/B has been as high as 1.55 and as low as 0.87, with a median of 1.32.
If you're looking for another solid Insurance - Multi line value stock, take a look at Mnchener RckversicherungsGesellschaft (MURGY). MURGY is a # 2 (Buy) stock with a Value score of A.
Shares of Mnchener RckversicherungsGesellschaft are currently trading at a forward earnings multiple of 9.55 and a PEG ratio of 1.82 compared to its industry's P/E and PEG ratios of 8.76 and 0.75, respectively.
MURGY's price-to-earnings ratio has been as high as 13.63 and as low as 7.92, with a median of 10.08, while its PEG ratio has been as high as 2.28 and as low as 0.46, with a median of 0.54, all within the past year.
Additionally, Mnchener RckversicherungsGesellschaft has a P/B ratio of 2.31 while its industry's price-to-book ratio sits at 2.37. For MURGY, this valuation metric has been as high as 2.35, as low as 1.24, with a median of 2.12 over the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Axa and Mnchener RckversicherungsGesellschaft are likely undervalued currently. And when considering the strength of its earnings outlook, AXAHY and MURGY sticks out as one of the market's strongest value stocks.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.3% per year. So be sure to give these hand-picked 7 your immediate attention.
See them now >>Axa Sa (AXAHY) : Free Stock Analysis Report
M?nchener R?ckversicherungs-Gesellschaft (MURGY) : Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
