Are Investors Undervaluing James River Group (JRVR) Right Now?
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, 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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company value investors might notice is James River Group (JRVR). JRVR is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value.
Another valuation metric that we should highlight is JRVR's P/B ratio of 1.35. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. JRVR's current P/B looks attractive when compared to its industry's average P/B of 2.57. Within the past 52 weeks, JRVR's P/B has been as high as 1.83 and as low as 1.29, with a median of 1.50.
Finally, we should also recognize that JRVR has a P/CF ratio of 6.22. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 6.48. Over the past year, JRVR's P/CF has been as high as 482.57 and as low as 5.99, with a median of 41.82.
These are only a few of the key metrics included in James River 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, JRVR looks like an impressive value stock at the moment.
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James River Group Holdings, Ltd. (JRVR) : Free Stock Analysis Report
