Is Old Republic International (ORI) Stock Undervalued Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One stock to keep an eye on is Old Republic International (ORI). ORI is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 9.17 right now. For comparison, its industry sports an average P/E of 9.82. Over the last 12 months, ORI's Forward P/E has been as high as 10.83 and as low as 7.75, with a median of 9.36.
Another valuation metric that we should highlight is ORI's P/B ratio of 1.08. Investors use the P/B ratio to look at a stock's market value versus 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 1.68. Over the past 12 months, ORI's P/B has been as high as 1.28 and as low as 0.96, with a median of 1.14.
Finally, our model also underscores that ORI has a P/CF ratio of 7.06. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. ORI's P/CF compares to its industry's average P/CF of 7.98. Within the past 12 months, ORI's P/CF has been as high as 7.31 and as low as 4.28, with a median of 5.21.
Radian Group (RDN) may be another strong Insurance - Multi line stock to add to your shortlist. RDN is a # 1 (Strong Buy) stock with a Value grade of A.
Shares of Radian Group are currently trading at a forward earnings multiple of 6.45 and a PEG ratio of 1.29 compared to its industry's P/E and PEG ratios of 9.82 and 0.98, respectively.
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