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.
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.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
CNA Financial (CNA) is a stock many investors are watching right now. CNA is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 9.7, which compares to its industry's average of 28.36. CNA's Forward P/E has been as high as 11.18 and as low as 9.52, with a median of 10.26, all within the past year.
Another notable valuation metric for CNA is its P/B ratio of 1.16. The P/B ratio is used to compare a stock's market value with 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 1.54. Within the past 52 weeks, CNA's P/B has been as high as 1.38 and as low as 1.10, with a median of 1.24.
Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by sales. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. CNA has a P/S ratio of 0.86. This compares to its industry's average P/S of 1.27.
These are just a handful of the figures considered in CNA Financial'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 CNA is an impressive value stock right now.
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CNA Financial Corporation (CNA): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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