Is Everest Re Group (RE) Stock Undervalued 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.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. 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 company to watch right now is Everest Re Group (RE). RE is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 8.44, which compares to its industry's average of 24.88. RE's Forward P/E has been as high as 14.42 and as low as 6.22, with a median of 7.92, all within the past year.
Finally, our model also underscores that RE has a P/CF ratio of 22.83. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 56.35. Within the past 12 months, RE's P/CF has been as high as 23.08 and as low as 7.23, with a median of 12.68.
These are only a few of the key metrics included in Everest Re Group'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, RE looks like an impressive value stock at the moment.
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Everest Re Group, Ltd. (RE) : Free Stock Analysis Report
