Is Everest Re Group (RE) a Great Value Stock Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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.
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.
One company to watch right now is Everest Re Group (RE). RE is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.
We also note that RE holds a PEG ratio of 0.74. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. RE's industry currently sports an average PEG of 2.13. Over the past 52 weeks, RE's PEG has been as high as 0.88 and as low as 0.17, with a median of 0.79.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. RE has a P/S ratio of 0.93. This compares to its industry's average P/S of 0.95.
If you're looking for another solid Insurance - Property and Casualty value stock, take a look at The Travelers Companies (TRV). TRV is a # 2 (Buy) stock with a Value score of A.
The Travelers Companies is trading at a forward earnings multiple of 11.40 at the moment, with a PEG ratio of 3.30. This compares to its industry's average P/E of 25.77 and average PEG ratio of 2.13.
Over the past year, TRV's P/E has been as high as 14.05, as low as 11.40, with a median of 12.66; its PEG ratio has been as high as 4.49, as low as 1.77, with a median of 0.79 during the same time period.
The Travelers Companies also has a P/B ratio of 1.50 compared to its industry's price-to-book ratio of 1.21. Over the past year, its P/B ratio has been as high as 1.74, as low as 1.26, with a median of 1.38.
These are only a few of the key metrics included in Everest Re Group and The Travelers Companies strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, RE and TRV look like an impressive value stock at the moment.
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Everest Re Group, Ltd. (RE) : Free Stock Analysis Report
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