Yahoo Finance 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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 company to watch right now is Axis Capital Holdings (AXS). AXS is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.
Investors should also note that AXS holds a PEG ratio of 1.36. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. AXS's PEG compares to its industry's average PEG of 2.24. Over the past 52 weeks, AXS's PEG has been as high as 2 and as low as 1.34, with a median of 1.57.
We should also highlight that AXS has a P/B ratio of 1.06. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. AXS's current P/B looks attractive when compared to its industry's average P/B of 1.39. Within the past 52 weeks, AXS's P/B has been as high as 1.31 and as low as 0.99, with a median of 1.11.
Finally, we should also recognize that AXS has a P/CF ratio of 14.07. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 35.85. AXS's P/CF has been as high as 17.12 and as low as 6.10, with a median of 9.55, all within the past year.
These are just a handful of the figures considered in Axis Capital Holdings'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 is an impressive value stock right now.
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Axis Capital Holdings Limited (AXS) : Free Stock Analysis Report
