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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 SiriusPoint (SPNT). SPNT is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock holds a P/E ratio of 7.44, while its industry has an average P/E of 8.28. Over the past year, SPNT's Forward P/E has been as high as 9.14 and as low as 7.44, with a median of 7.95.
Another notable valuation metric for SPNT is its P/B ratio of 1.08. 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. SPNT's current P/B looks attractive when compared to its industry's average P/B of 2.96. Over the past year, SPNT's P/B has been as high as 1.33 and as low as 0.84, with a median of 1.03.
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 preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. SPNT has a P/S ratio of 0.89. This compares to its industry's average P/S of 1.06.
These are only a few of the key metrics included in SiriusPoint'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, SPNT looks like an impressive value stock at the moment.
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SiriusPoint Ltd. (SPNT): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).