Is Legal & General Group (LGGNY) Stock Undervalued Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 stock to keep an eye on is Legal & General Group (LGGNY). LGGNY is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 6.95. This compares to its industry's average Forward P/E of 9.84. LGGNY's Forward P/E has been as high as 9.60 and as low as 5.23, with a median of 7.44, all within the past year.
Another notable valuation metric for LGGNY is its P/B ratio of 1.19. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 3.10. Over the past year, LGGNY's P/B has been as high as 1.71 and as low as 0.91, with a median of 1.26.
Investors could also keep in mind Radian Group (RDN), an Insurance - Multi line stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Shares of Radian Group currently holds a Forward P/E ratio of 5.77, and its PEG ratio is 1.15. In comparison, its industry sports average P/E and PEG ratios of 9.84 and 1.63.
Over the last 12 months, RDN's P/E has been as high as 7.75, as low as 5.53, with a median of 6.40, and its PEG ratio has been as high as 1.55, as low as 1.11, with a median of 1.28.
Radian Group also has a P/B ratio of 0.80 compared to its industry's price-to-book ratio of 3.10. Over the past year, its P/B ratio has been as high as 1.04, as low as 0.76, with a median of 0.91.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Legal & General Group and Radian Group are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, LGGNY and RDN feels like a great value stock at the moment.
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Legal & General Group PLC (LGGNY) : Free Stock Analysis Report
Radian Group Inc. (RDN) : Free Stock Analysis Report
