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Are Investors Undervaluing Donegal Group (DGICA) Right Now?
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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, 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 value investors might notice is Donegal Group (DGICA - Free Report) . DGICA is currently holding a Zacks Rank #1 (Strong Buy) and a Value grade of A. The stock holds a P/E ratio of 9.43, while its industry has an average P/E of 27.82. DGICA's Forward P/E has been as high as 19.17 and as low as 9.13, with a median of 14.49, all within the past year.
Investors should also recognize that DGICA has a P/B ratio of 1.17. The P/B ratio pits a stock's market value against 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 1.55. DGICA's P/B has been as high as 1.28 and as low as 0.93, with a median of 1.07, over the past year.
Value investors also use the P/S ratio. The P/S ratio 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. DGICA has a P/S ratio of 0.71. This compares to its industry's average P/S of 1.3.
Finally, investors will want to recognize that DGICA has a P/CF ratio of 7.04. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. DGICA's current P/CF looks attractive when compared to its industry's average P/CF of 12.82. Over the past year, DGICA's P/CF has been as high as 37.61 and as low as 6.05, with a median of 8.12.
If you're looking for another solid Insurance - Property and Casualty value stock, take a look at First American Financial (FAF - Free Report) . FAF is a Zacks Rank of #2 (Buy) stock with a Value score of A.
First American Financial also has a P/B ratio of 1.33 compared to its industry's price-to-book ratio of 1.55. Over the past year, its P/B ratio has been as high as 1.43, as low as 1.08, with a median of 1.29.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Donegal Group and First American Financial are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, DGICA and FAF feels like a great value stock at the moment.
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Are Investors Undervaluing Donegal Group (DGICA) Right Now?
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, 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 value investors might notice is Donegal Group (DGICA - Free Report) . DGICA is currently holding a Zacks Rank #1 (Strong Buy) and a Value grade of A. The stock holds a P/E ratio of 9.43, while its industry has an average P/E of 27.82. DGICA's Forward P/E has been as high as 19.17 and as low as 9.13, with a median of 14.49, all within the past year.
Investors should also recognize that DGICA has a P/B ratio of 1.17. The P/B ratio pits a stock's market value against 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 1.55. DGICA's P/B has been as high as 1.28 and as low as 0.93, with a median of 1.07, over the past year.
Value investors also use the P/S ratio. The P/S ratio 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. DGICA has a P/S ratio of 0.71. This compares to its industry's average P/S of 1.3.
Finally, investors will want to recognize that DGICA has a P/CF ratio of 7.04. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. DGICA's current P/CF looks attractive when compared to its industry's average P/CF of 12.82. Over the past year, DGICA's P/CF has been as high as 37.61 and as low as 6.05, with a median of 8.12.
If you're looking for another solid Insurance - Property and Casualty value stock, take a look at First American Financial (FAF - Free Report) . FAF is a Zacks Rank of #2 (Buy) stock with a Value score of A.
First American Financial also has a P/B ratio of 1.33 compared to its industry's price-to-book ratio of 1.55. Over the past year, its P/B ratio has been as high as 1.43, as low as 1.08, with a median of 1.29.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Donegal Group and First American Financial are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, DGICA and FAF feels like a great value stock at the moment.