Should Value Investors Buy Axis Capital Holdings (AXS) Stock?
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, 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 use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company value investors might notice is Axis Capital Holdings (AXS). AXS is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.
We also note that AXS holds a PEG ratio of 1.20. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. AXS's industry currently sports an average PEG of 2.50. Over the past 52 weeks, AXS's PEG has been as high as 2 and as low as 1.19, with a median of 1.42.
We should also highlight that AXS has a P/B ratio of 1.04. 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 1.35. AXS's P/B has been as high as 1.31 and as low as 1, with a median of 1.10, over the past year.
If you're looking for another solid Insurance - Property and Casualty value stock, take a look at The Travelers Companies (TRV). TRV is a # 2 (Buy) stock with a Value score of A.
The Travelers Companies is trading at a forward earnings multiple of 10.49 at the moment, with a PEG ratio of 1.05. This compares to its industry's average P/E of 26.26 and average PEG ratio of 2.50.
TRV's price-to-earnings ratio has been as high as 14.22 and as low as 10.49, with a median of 11.81, while its PEG ratio has been as high as 2.85 and as low as 1.05, with a median of 1.31, all within the past year.
The Travelers Companies sports a P/B ratio of 1.69 as well; this compares to its industry's price-to-book ratio of 1.35. In the past 52 weeks, TRV's P/B has been as high as 2.24, as low as 1.67, with a median of 1.83.
These are just a handful of the figures considered in Axis Capital Holdings and The Travelers Companies's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that AXS and TRV is an impressive value stock right now.
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Axis Capital Holdings Limited (AXS) : Free Stock Analysis Report
The Travelers Companies, Inc. (TRV) : Free Stock Analysis Report
