Are Investors Undervaluing Heritage Insurance (HRTG) Right Now?

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader 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 Heritage Insurance (HRTG). HRTG is currently sporting a Zacks Rank #1 (Strong Buy), as well as an A grade for Value.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 preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. HRTG has a P/S ratio of 0.99. This compares to its industry's average P/S of 1.26.Finally, our model also underscores that HRTG has a P/CF ratio of 7.53. 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 stock's P/CF looks attractive against its industry's average P/CF of 13.17. Over the past 52 weeks, HRTG's P/CF has been as high as 9.22 and as low as 3.66, with a median of 5.56.Another great Insurance - Property and Casualty stock you could consider is Mercury General (MCY), which is a Zacks Rank of #1 (Strong Buy) stock with a Value Score of A.Furthermore, Mercury General holds a P/B ratio of 2.24 and its industry's price-to-book ratio is 1.50. MCY's P/B has been as high as 2.35, as low as 1.34, with a median of 1.92 over the past 12 months.These are only a few of the key metrics included in Heritage Insurance and Mercury General strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, HRTG and MCY look like an impressive value stock at the moment.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the favorite stock to gain +100% or more in the months ahead. They includeStock #1: A Disruptive Force with Notable Growth and ResilienceStock #2: Bullish Signs Signaling to Buy the DipStock #3: One of the Most Compelling Investments in the MarketStock #4: Leader In a Red-Hot Industry Poised for GrowthStock #5: Modern Omni-Channel Platform Coiled to SpringMost of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. While not all picks can be winners, previous recommendations have soared +171%, +209% and +232%.Download Atomic Opportunity: Nuclear Energy's Comeback free today.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Heritage Insurance Holdings, Inc. (HRTG): Free Stock Analysis Report Mercury General Corporation (MCY): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks