Should Value Investors Buy SiriusPoint (SPNT) Stock?

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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

SiriusPoint (SPNT) is a stock many investors are watching right now. SPNT is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 7.44, which compares to its industry's average of 9.47. SPNT's Forward P/E has been as high as 9.14 and as low as 7.44, with a median of 7.95, all within the past year.

Another notable valuation metric for SPNT is its P/B ratio of 1.08. The P/B ratio pits a stock's market value against 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 3.02. Over the past year, 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 0.85. This compares to its industry's average P/S of 1.08.

These are only a few of the key metrics included in SiriusPoint's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, SPNT looks like an impressive value stock at the moment.

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

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