Is Argo Group (ARGO) a Great Value Stock 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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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 Argo Group (ARGO). ARGO is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 9.39 right now. For comparison, its industry sports an average P/E of 27.90. ARGO's Forward P/E has been as high as 17.77 and as low as 8.80, with a median of 13.55, all within the past year.

Another notable valuation metric for ARGO is its P/B ratio of 1. 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 1.24. Over the past 12 months, ARGO's P/B has been as high as 1.32 and as low as 0.82, with a median of 1.08.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. ARGO has a P/S ratio of 0.69. This compares to its industry's average P/S of 0.93.

Tokio Marine (TKOMY) may be another strong Insurance - Property and Casualty stock to add to your shortlist. TKOMY is a # 2 (Buy) stock with a Value grade of A.

Shares of Tokio Marine currently holds a Forward P/E ratio of 12.68, and its PEG ratio is 0.43. In comparison, its industry sports average P/E and PEG ratios of 27.90 and 2.76.

Over the last 12 months, TKOMY's P/E has been as high as 15.35, as low as 7.64, with a median of 10.79, and its PEG ratio has been as high as 1.35, as low as 0.43, with a median of 0.49.

Furthermore, Tokio Marine holds a P/B ratio of 1.02 and its industry's price-to-book ratio is 1.24. TKOMY's P/B has been as high as 1.23, as low as 0.88, with a median of 1 over the past 12 months.

These are only a few of the key metrics included in Argo Group and Tokio Marine strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, ARGO and TKOMY look like an impressive value stock at the moment.

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Argo Group International Holdings, Ltd. (ARGO) : Free Stock Analysis Report
 
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