Should Value Investors Buy SiriusPoint (SPNT) Stock?

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.

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 value investors might notice is SiriusPoint (SPNT). SPNT is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 7.44. This compares to its industry's average Forward P/E of 8.25. Over the past year, SPNT's Forward P/E has been as high as 9.14 and as low as 7.44, with a median of 7.95.

We should also highlight that SPNT 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 attractive against its industry's average P/B of 2.09. Over the past 12 months, SPNT's P/B has been as high as 1.33 and as low as 0.84, with a median of 1.03.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. SPNT has a P/S ratio of 0.79. This compares to its industry's average P/S of 1.01.

These are just a handful of the figures considered in SiriusPoint'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 SPNT is an impressive value stock right now.

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

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