Is Axis Capital Holdings (AXS) a Great Value Stock Right Now?
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 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.
Axis Capital Holdings (AXS) is a stock many investors are watching right now. AXS is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value.
We also note that AXS holds a PEG ratio of 1.22. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. AXS's industry currently sports an average PEG of 2.62. Within the past year, AXS's PEG has been as high as 1.59 and as low as 1.13, with a median of 1.27.
We should also highlight that AXS has a P/B ratio of 1.19. 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. This stock's P/B looks attractive against its industry's average P/B of 1.66. AXS's P/B has been as high as 1.26 and as low as 1, with a median of 1.06, over the past year.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. AXS has a P/S ratio of 0.94. This compares to its industry's average P/S of 1.15.
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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Axis Capital Holdings Limited (AXS) : Free Stock Analysis Report
