Even though ongoing supply chain disruptions and record-high inflation worry investors, impressive third-quarter earnings reports so far have helped the major stock market indexes rally. According to a FactSet report, more…
S&P 500 companies are beating EPS estimates for the third quarter than average and beating EPS estimates by a wider margin than average.
Moreover, the Conference Board Consumer Confidence Index stood at 113.8 on October 26, increasing from 109.8 in September. Given the positivity in the market, many stocks have reached valuations that are not in sync with their growth prospects. However, several stocks are still trading at reasonable valuations. According to Research Affiliates Founder and Chairman Rob Arnott, value stocks might provide a 5-10% return over the next decade.
So, it could be wise to bet on quality mid-cap stocks Assurant, Inc. (AIZ – Get Rating), Jabil Inc. (JBL – Get Rating), and First American Financial Corporation (FAF – Get Rating), which look undervalued at their current price levels. These stocks have an overall B (Buy) rating in our proprietary POWR Ratings system.
AIZ provides lifestyle and housing solutions that support, protect, and connect consumer purchases across the globe. The company operates through three segments: Global Lifestyle; Global Housing; and Global Preneed. It has a market capitalization of $9.54 billion.
On October 12, 2021, AIZ announced the launch of several new digital retailing offerings for dealerships. Assurant Global Automotive Senior Vice President of Global Transformation, Martin Jenns, said, “As automotive consumers begin to shift more of their experience online, Assurant is focused on helping dealers create a strong, omnichannel presence for their customers, so they can continue seeing the same profit margins, regardless of where the sales process begins, long into the future.”
AIZ’s total revenue increased 8.1% year-over-year to $2.54 billion for the fiscal second quarter that ended June 30, 2021. The company’s net income came in at $203.40 million, representing a 17.2% year-over-year rise. Its EPS increased 16.2% year-over-year to $3.01, and its adjusted EBITDA came in at $297.60 million, up 10.1% year-over-year.
In terms of forward EV/S, AIZ’s 0.95x is 70.9% lower than the industry average of 3.26x. In addition, the stock’s forward P/S of 0.95x is lower than the industry average of 3.47x.
For fiscal 2022, analysts expect AIZ’s revenue to be $10.71 billion, representing a 7% year-over-year rise. The company’s EPS is expected to increase 29.5% year-over-year to $11.18 in fiscal 2021. In addition, it surpassed the consensus EPS estimates in three of the trailing four quarters. Over the past year, the stock has gained 31.8% to close yesterday’s trading session at $162.26.
AIZ’s POWR Ratings reflect this promising outlook. The stock has an overall grade of B, which equates to a Buy rating in our POWR Ratings system. The POWR Ratings assess stocks by 118 different factors, each with its own weighting.
Also, the stock has a B grade for Stability and Growth. Within the Insurance – Accident & Supplemental industry, it is ranked #2 out of 10 stocks. Click here to see additional grades for Value, Quality, Momentum, and Sentiment.
With a market capitalization of $8.82 billion, JBL provides manufacturing services and solutions worldwide. The company operates in two segments: Electronics Manufacturing Services and Diversified Manufacturing Services. In addition, it provides electronic design, production, and product management services.
On October 19, 2021, Jabil Packaging Solutions (JPS), a division of JBL, announced its reinvention of the wipe’s container. Vice President of Technology Ayana Johnson, Jabil Packaging Solutions, said, “As home delivery has taken off, we’ve seen…
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