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MARKETS LIVE BLOG:

STOCKS OPEN MIXED, TESLA SURGES DAY AFTER EARNINGS

Tesla shares jump after EV maker vows to speed up launch of more affordable models

Should Value Investors Buy Stewart Information Services (STC) Stock?

Zacks Equity Research
·2 min read

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, 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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One company value investors might notice is Stewart Information Services (STC). STC is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.

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We should also highlight that STC has a P/B ratio of 1.04. 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 1.38. Over the past 12 months, STC's P/B has been as high as 1.77 and as low as 0.94, with a median of 1.36.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. STC has a P/S ratio of 0.41. This compares to its industry's average P/S of 0.89.

If you're looking for another solid Insurance - Property and Casualty value stock, take a look at Tokio Marine (TKOMY). TKOMY is a # 2 (Buy) stock with a Value score of A.

Shares of Tokio Marine currently holds a Forward P/E ratio of 9.09, and its PEG ratio is 0.43. In comparison, its industry sports average P/E and PEG ratios of 25.54 and 2.44.


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Stewart Information Services Corporation (STC) : Free Stock Analysis Report
 
Tokio Marine Holdings Inc. (TKOMY) : Free Stock Analysis Report
 
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Zacks Investment Research