U.S. markets closed
  • S&P 500

    4,185.47
    +15.05 (+0.36%)
     
  • Dow 30

    34,200.67
    +164.68 (+0.48%)
     
  • Nasdaq

    14,052.34
    +13.58 (+0.10%)
     
  • Russell 2000

    2,262.67
    +5.60 (+0.25%)
     
  • Crude Oil

    63.07
    -0.39 (-0.61%)
     
  • Gold

    1,777.30
    +10.50 (+0.59%)
     
  • Silver

    26.04
    +0.08 (+0.29%)
     
  • EUR/USD

    1.1980
    +0.0004 (+0.04%)
     
  • 10-Yr Bond

    1.5730
    +0.0430 (+2.81%)
     
  • GBP/USD

    1.3840
    +0.0056 (+0.41%)
     
  • USD/JPY

    108.7830
    +0.0670 (+0.06%)
     
  • BTC-USD

    55,691.64
    -5,120.21 (-8.42%)
     
  • CMC Crypto 200

    1,398.97
    +7.26 (+0.52%)
     
  • FTSE 100

    7,019.53
    +36.03 (+0.52%)
     
  • Nikkei 225

    29,683.37
    +40.68 (+0.14%)
     

Why Donegal Group (DGICA) is Such a Great Value Stock Pick Right Now

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
Zacks Equity Research
·2 min read
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

Value investing is always a very popular strategy, and for good reason. After all, who doesn’t want to find stocks that have low PEs, solid outlooks, and decent dividends? 

Fortunately for investors looking for this combination, we have identified a strong candidate which may be an impressive value; Donegal Group Inc. DGICA.

Donegal Group in Focus

DGICA may be an interesting play thanks to its forward PE of 11.4, its P/S ratio of 0.5, and its decent dividend yield of 4.2%. These factors suggest that Casey's is a pretty good value pick, as investors have to pay a relatively low level for each dollar of earnings, and that DGICA has decent revenue metrics to back up its earnings. 

Donegal Group, Inc. PE Ratio (TTM)

Donegal Group, Inc. PE Ratio (TTM)
Donegal Group, Inc. PE Ratio (TTM)

Donegal Group, Inc. pe-ratio-ttm | Donegal Group, Inc. Quote

But before you think that Donegal Group is just a pure value play, it is important to note that it has been seeing solid activity on the earnings estimate front as well. For current year earnings, the consensus has gone up by 13.6% in the past 30 days, thanks to one upward revision in the past one month compared to none lower.

This estimate strength is actually enough to push DGICA to a Zacks Rank #2 (Buy), suggesting it is poised to outperform. You can see the complete list of today’s Zacks #1 Rank (Strong Buy)  stocks here. 

So really, Donegal Group is looking great from a number of angles thanks to its PE below 20, a P/S ratio below one, and a strong Zacks Rank, meaning that this company could be a great choice for value investors at this time. 

Today's Best Stocks from Zacks 

Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2019, while the S&P 500 gained and impressive +53.6%, five of our strategies returned +65.8%, +97.1%, +118.0%, +175.7% and even +186.7%.

This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year. 

See their latest picks free >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Donegal Group, Inc. (DGICA) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research