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.
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 stock to keep an eye on is Kemper (KMPR). KMPR is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.
Investors should also recognize that KMPR has a P/B ratio of 1.42. Investors use the P/B ratio to look at a stock's market value versus 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 2.58. Over the past year, KMPR's P/B has been as high as 1.67 and as low as 1.27, with a median of 1.49.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. KMPR has a P/S ratio of 0.85. This compares to its industry's average P/S of 1.05.
Another great Insurance - Multi line stock you could consider is Scor (SCRYY), which is a # 1 (Strong Buy) stock with a Value Score of A.
Furthermore, Scor holds a P/B ratio of 1.08 and its industry's price-to-book ratio is 2.58. SCRYY's P/B has been as high as 1.22, as low as 0.70, with a median of 0.93 over the past 12 months.
These are just a handful of the figures considered in Kemper and Scor'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 KMPR and SCRYY is an impressive value stock right now.
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Kemper Corporation (KMPR): Free Stock Analysis Report Scor SE (SCRYY): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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