Here's Why Everest Re (RE) is a Strong Value Stock
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.
Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.
Why Investors Should Pay Attention to This Value Stock
Different than growth or momentum investors, value-focused investors are all about finding good stocks at good prices, and discovering which companies are trading under what their true value is before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to help pick out the most attractive and discounted stocks.
Everest Re (RE)
Founded in 1973 and based in Hamilton, Bermuda, Everest Re Group Ltd. writes property and casualty, reinsurance and insurance in the U.S, Bermuda and international markets. The company also offers other innovative products like excess and surplus lines of insurance. Everest Re virtually underwrites all classes and categories of business in treaty, facultative, and specialty lines both through brokers and directly with ceding companies.
RE boasts a Value Style Score of A and VGM Score of B, and holds a Zacks Rank #1 (Strong Buy) rating. Shares of Everest Re are trading at a forward earnings multiple of 7.5X, as well as a PEG Ratio of 0.2, a Price/Cash Flow ratio of 12.1X, and a Price/Sales ratio of 1.1X.
A company's earnings performance is important for value investors as well. For fiscal 2023, three analysts revised their earnings estimate higher in the last 60 days for RE, while the Zacks Consensus Estimate has increased $3.83 to $46.03 per share. RE also holds an average earnings surprise of 18.4%.
With strong valuation and earnings metrics, a good Zacks Rank, and top-tier Value and VGM Style Scores, investors should strongly think about adding RE to their portfolios.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Everest Re Group, Ltd. (RE) : Free Stock Analysis Report
