Is Tokio Marine (TKOMY) a Great Value Stock Right Now?

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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One company to watch right now is Tokio Marine (TKOMY). TKOMY 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 12.20 right now. For comparison, its industry sports an average P/E of 25.70. Over the past 52 weeks, TKOMY's Forward P/E has been as high as 15.35 and as low as 7.64, with a median of 11.43.

We should also highlight that TKOMY has a P/B ratio of 1.08. The P/B is a method of comparing a stock's market value to 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 1.16. TKOMY's P/B has been as high as 1.23 and as low as 0.88, with a median of 1.03, over the past year.

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. TKOMY has a P/S ratio of 0.74. This compares to its industry's average P/S of 0.93.

Investors could also keep in mind Universal Insurance Holdings (UVE), an Insurance - Property and Casualty stock with a Zacks Rank of # 2 (Buy) and Value grade of A.

Universal Insurance Holdings also has a P/B ratio of 0.95 compared to its industry's price-to-book ratio of 1.16. Over the past year, its P/B ratio has been as high as 1.41, as low as 0.82, with a median of 0.95.

Value investors will likely look at more than just these metrics, but the above data helps show that Tokio Marine and Universal Insurance Holdings are likely undervalued currently. And when considering the strength of its earnings outlook, TKOMY and UVE sticks out as one of the market's strongest value stocks.

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