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Should Value Investors Buy Axis Capital Holdings (AXS) Stock?

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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, value investing is easily one of the most popular ways to find great stocks in any market environment. 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.

Axis Capital Holdings (AXS - Free Report) is a stock many investors are watching right now. AXS is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.

Another notable valuation metric for AXS is its P/B ratio of 1.30. 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 company's current P/B looks solid when compared to its industry's average P/B of 1.60. Within the past 52 weeks, AXS's P/B has been as high as 1.32 and as low as 0.98, with a median of 1.17.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. AXS has a P/S ratio of 1.2. This compares to its industry's average P/S of 1.22.

These are only a few of the key metrics included in Axis Capital Holdings's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, AXS looks like an impressive value stock at the moment.


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