Are Investors Undervaluing Ping An Insurance Co. of China (PNGAY) Right Now?

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore 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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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.

Ping An Insurance Co. of China (PNGAY) is a stock many investors are watching right now. PNGAY is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 6.33, which compares to its industry's average of 9.07. Over the past year, PNGAY's Forward P/E has been as high as 7.81 and as low as 4.52, with a median of 5.81.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. PNGAY has a P/S ratio of 0.72. This compares to its industry's average P/S of 1.09.

Another great Insurance - Multi line stock you could consider is SiriusPoint (SPNT), which is a Zacks Rank of #2 (Buy) stock with a Value Score of A.

Additionally, SiriusPoint has a P/B ratio of 1.08 while its industry's price-to-book ratio sits at 2.77. For SPNT, this valuation metric has been as high as 1.33, as low as 0.84, with a median of 1.03 over the past year.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Ping An Insurance Co. of China and SiriusPoint are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, PNGAY and SPNT feels like a great value stock at the moment.

Zacks' Research Chief Names "Stock Most Likely to Double"

Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.

Of course, all our elite picks aren't winners, but this one could far surpass earlier Zacks' Stocks Set to Double like D-Wave Quantum, which shot up +680.1%.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research