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Here's Why NMI Holdings (NMIH) is a Strong Value Stock

Zacks Equity Research
·2 min read

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.

While you may have an investing style you rely on, finding great stocks is made easier with the Zacks Style Scores. These are complementary indicators that rate stocks based on value, growth, and/or momentum characteristics.

Why Investors Should Pay Attention to This Value Stock

Different than growth or momentum investors, value-focused investors are all about finding good stocks at good prices, and discovering which companies are trading under what their true value is before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to help pick out the most attractive and discounted stocks.

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NMI Holdings (NMIH)

Headquartered in Emeryville, CA, NMI Holdings was incorporated in May 2011 and began start-up operations in 2012. NMI Holdings wrote its first MI policy in 2013.

NMIH is a Zacks Rank #2 (Buy) stock, with a Value Style Score of B and VGM Score of A. Shares are currently trading at a forward P/E of 7.8X for the current fiscal year compared to the Insurance - Property and Casualty industry's P/E of 12.9X. Additionally, NMIH has a PEG Ratio of 1.2 and a Price/Cash Flow ratio of 7.8X. Value investors should also note NMIH's Price/Sales ratio of 4.4X.

Value investors don't just pay attention to a company's valuation ratios; positive earnings play a crucial role, too. Three analysts revised their earnings estimate upwards in the last 60 days for fiscal 2024. The Zacks Consensus Estimate has increased $0.14 to $4.18 per share. NMIH has an average earnings surprise of 8.6%.

With strong valuation and earnings metrics, a good Zacks Rank, and top-tier Value and VGM Style Scores, investors should strongly think about adding NMIH to their portfolios.

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NMI Holdings Inc (NMIH) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research