Are Investors Undervaluing Reinsurance Group of America (RGA) 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.

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 Reinsurance Group of America (RGA). RGA is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 7.54. This compares to its industry's average Forward P/E of 8.18. Over the last 12 months, RGA's Forward P/E has been as high as 10.24 and as low as 7.17, with a median of 8.48.

Another valuation metric that we should highlight is RGA's P/B ratio of 1.02. 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 1.77. RGA's P/B has been as high as 1.47 and as low as 0.96, with a median of 1.18, over the past year.

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. RGA has a P/S ratio of 0.57. This compares to its industry's average P/S of 0.73.

These are just a handful of the figures considered in Reinsurance Group of America'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 RGA is an impressive value stock right now.

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Reinsurance Group of America, Incorporated (RGA): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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