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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 company value investors might notice is SiriusPoint (SPNT). SPNT is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 7.44. This compares to its industry's average Forward P/E of 9.27. SPNT's Forward P/E has been as high as 9.14 and as low as 7.44, with a median of 7.95, all within the past year.
Another notable valuation metric for SPNT is its P/B ratio of 1.08. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 2.88. Over the past 12 months, 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 love the P/S ratio, which is calculated by simply dividing a stock's price with the company's 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. SPNT has a P/S ratio of 0.86. This compares to its industry's average P/S of 1.07.
These are just a handful of the figures considered in SiriusPoint'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 SPNT is an impressive value stock right now.
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SiriusPoint Ltd. (SPNT): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).