RE or CINF: Which Is the Better Value Stock Right Now?
Investors with an interest in Insurance - Property and Casualty stocks have likely encountered both Everest Re (RE) and Cincinnati Financial (CINF). But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, Everest Re has a Zacks Rank of #1 (Strong Buy), while Cincinnati Financial has a Zacks Rank of #2 (Buy). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that RE is likely seeing its earnings outlook improve to a greater extent. But this is only part of the picture for value investors.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
RE currently has a forward P/E ratio of 8.55, while CINF has a forward P/E of 23.65. We also note that RE has a PEG ratio of 0.35. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. CINF currently has a PEG ratio of 1.34.
Another notable valuation metric for RE is its P/B ratio of 1.79. 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. By comparison, CINF has a P/B of 1.81.
These are just a few of the metrics contributing to RE's Value grade of A and CINF's Value grade of C.
RE sticks out from CINF in both our Zacks Rank and Style Scores models, so value investors will likely feel that RE is the better option right now.
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Everest Re Group, Ltd. (RE) : Free Stock Analysis Report
Cincinnati Financial Corporation (CINF) : Free Stock Analysis Report
