Are you a value investor? This 1 stock could be the perfect choice

Making full use of the opportunities offered by the stock market and investing with confidence are common goals for both new and old investors.

Even if you have an investing style you rely on, finding great stocks is made easier with Zacks Style Scores, complementary indicators that evaluate stocks based on value, growth and/or momentum characteristics.

Why investors should pay attention to this value stock

Value investors like to focus on finding good stocks at good prices and figuring out which companies are trading below their true value. The Value Style Score therefore takes into account metrics such as P/E, PEG, price-to-sales and price-to-cash flow to highlight the most attractive and cheapest stocks.

Cincinnati Financial (CINF)

Cincinnati Financial Corporation, founded in 1968 and headquartered in Fairfield, Ohio, distributes property and casualty insurance. Cincinnati Financial owns three subsidiaries: The Cincinnati Insurance Company, CSU Producer Resources Inc. and CFC Investment Company. In addition, the parent company has an investment portfolio. The Cincinnati Insurance Company owns four other insurance subsidiaries. The standard market property and casualty insurance group includes two of these subsidiaries – The Cincinnati Casualty Company and The Cincinnati Indemnity Company. This group issues a broad range of commercial, home and auto insurance. The Cincinnati Insurance Company also conducts the business of our assumed reinsurance activities, known as Cincinnati Re. Other subsidiaries of The Cincinnati Insurance Company include: The Cincinnati Life Insurance Company, which offers life insurance policies and fixed annuities, and The Cincinnati Specialty Underwriters Insurance Company, which offers excess and surplus insurance products.

CINF is a Zacks Rank #2 (Buy) stock with a Value Style Score of B and a VGM Score of B. Shares are currently trading at a forward P/E ratio of 20.8 for the current fiscal year, compared to the Property and Casualty Insurance industry’s P/E ratio of 13.8. Additionally, CINF has a PEG ratio of 1.2 and a price-to-cash-flow ratio of 20.4. Value investors should also note CINF’s price-to-sales ratio of 1.7.

Many value investors also pay close attention to a company’s earnings. For CINF, five analysts have upgraded their earnings estimates in the past 60 days, and the Zacks Consensus Estimate has increased by $0.43 to $5.00 per share for 2023. On a per-share basis, CINF has an average earnings surprise of 25.3%.

Given strong valuation and earnings metrics, a good Zacks Rank, and top-notch Value and VGM Style Scores, investors should seriously consider adding CINF to their portfolio.

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