Should Value Investors Buy Assurant (AIZ) Stock?
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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One stock to keep an eye on is Assurant (AIZ). AIZ is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.
Another notable valuation metric for AIZ is its P/B ratio of 1.98. 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 stock's P/B looks solid versus its industry's average P/B of 2.35. Over the past year, AIZ's P/B has been as high as 2.01 and as low as 1.31, with a median of 1.68.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. AIZ has a P/S ratio of 0.84. This compares to its industry's average P/S of 0.95.
Value investors will likely look at more than just these metrics, but the above data helps show that Assurant is likely undervalued currently. And when considering the strength of its earnings outlook, AIZ sticks out at as one of the market's strongest value stocks.
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Assurant, Inc. (AIZ) : Free Stock Analysis Report
