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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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.
One company to watch right now is Axis Capital Holdings (AXS). AXS is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.
AXS is also sporting a PEG ratio of 2.24. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. AXS's industry currently sports an average PEG of 4.53. AXS's PEG has been as high as 4.14 and as low as 0.24, with a median of 0.28, all within the past year.
We should also highlight that AXS has a P/B ratio of 1.34. 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. This stock's P/B looks attractive against its industry's average P/B of 1.63. Within the past 52 weeks, AXS's P/B has been as high as 1.51 and as low as 1.04, with a median of 1.26.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. AXS has a P/S ratio of 1.25. This compares to its industry's average P/S of 1.26.
Finally, investors will want to recognize that AXS has a P/CF ratio of 7.29. 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. AXS's current P/CF looks attractive when compared to its industry's average P/CF of 10.11. AXS's P/CF has been as high as 12.01 and as low as 6.59, with a median of 9.26, all within the past year.
These are just a handful of the figures considered in Axis Capital Holdings'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 AXS is an impressive value stock right now.
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Axis Capital Holdings Limited (AXS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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