Are You a Value Investor? This 1 Stock Could Be the Perfect Pick

Zacks Equity Research
·2-min read

It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors.

Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.

Why Investors Should Pay Attention to This Value Stock

Value investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, and Price/Cash Flow, the Value Style Score identifies the most attractive and most discounted stocks.

NMI Holdings (NMIH)

Headquartered in Emeryville, CA, NMI Holdings was incorporated in May 2011 and began start-up operations in 2012. NMI Holdings wrote its first MI policy in 2013.

NMIH is a Zacks Rank #2 (Buy) stock, with a Value Style Score of B and VGM Score of B. Shares are currently trading at a forward P/E of 8.1X for the current fiscal year compared to the Insurance - Property and Casualty industry's P/E of 12.5X. Additionally, NMIH has a PEG Ratio of 1.2 and a Price/Cash Flow ratio of 8.3X. Value investors should also note NMIH's Price/Sales ratio of 4.6X.

A company's earnings performance is important for value investors as well. For fiscal 2024, one analyst revised their earnings estimate higher in the last 60 days for NMIH, while the Zacks Consensus Estimate has increased $0.06 to $4.25 per share. NMIH also holds an average earnings surprise of 8.6%.

NMIH should be on investors' short lists because of its impressive earnings and valuation fundamentals, a good Zacks Rank, and strong Value and VGM Style Scores.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

NMI Holdings Inc (NMIH) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

  • Up next
  • Up next
  • Up next
  • Up next

Latest stories

  • Stocks rise as US inflation data boosts rate cut hopes

    Major stock markets pushed higher Friday as traders welcomed data showing a moderation in US inflation, firming expectations the Federal Reserve will start cutting interest rates in September.The inflation data followed figures Thursday that showed the US economy expanded far more than expected in the second quarter, providing a much-needed boost to sentiment and easing concerns that it was slowing a little too much for comfort.

  • Malaysian market wins over investors as Thai equities lose lustre from political instability, fewer tourists

    BANGKOK, July 27 — For years, Thai equities were among Southeast Asia’s largest stock markets. However, Malaysia and Sin...

  • AMD Stock Before Q2 Earnings Report: To Buy or Not to Buy?

    AMD's second-quarter 2024 results are expected to suffer from sluggish results from the Embedded and Gaming segments, as well as stiff competition from NVIDIA.

  • Best Growth Stocks to Buy for July 26th

    PDD, VRT and PGR made it to the Zacks Rank #1 (Strong Buy) growth stocks list on July 26, 2024.

  • Altria (MO) Hits 52-Week High: Time to Cash In or Hold Steady?

    Altria's (MO) strategic moves into smoke-free products offer growth potential, though the declining cigarette business raises concerns.

  • Fed's preferred inflation gauge shows prices rose at slowest pace since March 2021

    The latest reading on the Fed Reserve's preferred inflation gauge comes just days before the Fed's next policy meeting as investors look for clues on when interest rate cuts might begin.

  • Shell (SHEL) Q2 Earnings Coming Up: Here's What to Expect

    Shell (SHEL) beat the Zacks Consensus Estimate for earnings in three of the last four quarters and missed in the other, resulting in an earnings surprise of 9.2%, on average.

  • Transocean (RIG) Surges 10.7%: Is This an Indication of Further Gains?

    Transocean (RIG) saw its shares surge in the last session with trading volume being higher than average. The latest trend in earnings estimate revisions may not translate into further price increase in the near term.

  • Stocks to watch next week: Meta, Apple, Amazon and also UK interest rates

    Earnings preview of key companies reporting next week and what to look out for

  • Here is What to Know Beyond Why IonQ, Inc. (IONQ) is a Trending Stock

    Recently, Zacks.com users have been paying close attention to IonQ (IONQ). This makes it worthwhile to examine what the stock has in store.

  • Core Laboratories (CLB) Q2 Earnings Beat & Revenues Lag

    Core Laboratories (CLB) expects Reservoir Description revenues of $86.5-$89.5 million and Production Enhancement revenues of $44.5-$47.5 million for the third quarter of 2024.

  • Investors Are Suddenly Getting Very Concerned That AI Isn't Making Any Serious Money

    An increasing number of Silicon Valley investors and Wall Street analysts are starting to ring the alarm bells over the billions of dollars being invested in AI, an overconfidence that could result in a massive bubble. As the Washington Post reports, investment bankers are singing a dramatically different tune than last year, a period marked […]

  • 2 charts show why the stock market sell-off isn't done yet

    The stock market rally has started to wobble in July and market strategists believe this could be the start of the average pullback seen in bull markets.

  • MongoDB (MDB) Stock Drops Despite Market Gains: Important Facts to Note

    The latest trading day saw MongoDB (MDB) settling at $253.50, representing a -1.08% change from its previous close.

  • Here's Why Paramount Global-B (PARA) is a Strong Value Stock

    Whether you're a value, growth, or momentum investor, finding strong stocks becomes easier with the Zacks Style Scores, a top feature of the Zacks Premium research service.

  • 3 BlackRock Mutual Funds to Buy With Rate Cuts on the Horizon

    Invest in BlackRock mutual funds like BMCAX, BATPX and MRBVX for high returns and risk reduction as the first rate cut appears on the horizon.

  • ‘Why is it so hard to spend a £10 note in central London?’

    I have a confession to make. Despite writing regularly about how important cash is for many, I rarely use notes and coins.

  • What retail investors want to know about markets right now

    It was a rocky week for stocks, with the Dow Jones Industrial Average being the only of the big three indexes (^DJI,^GSPC, ^IXIC) to post a weekly gain. But retail investors have seemingly shrugged it off, Investopedia Editor-in-Chief Caleb Silver tells Yahoo Finance. Based on Investopedia's sentiment indicators, Silver thinks that, overall, the stock decline may not have lasted long enough for it to really register with individual investors. "Even though we have had these sort of pauses... this rotation is super healthy and I think investors that have been through a couple of cycles know this. They know that market breadth expansion is actually good for the overall health of the bull market," he says. So, what is Investopedia's audience interested in right now? The election, though Silver notes that it's "not necessarily about who wins as much as what kind of chaos can we expect in front of and during that election." He also notes there is interest in debt levels by president, inflation rates by president, and investing in small caps.  For more expert insight and the latest market action, click here to watch this full episode of Asking For A Trend. This post was written by Stephanie Mikulich.

  • $1 million starter homes a new norm in 200+ cities: Zillow

    A new Zillow report shows starter homes costing $1 million are becoming the norm in more than 200 cities in the United States. Zillow Home Loans senior economist Orphe Divounguy joins Wealth! to discuss the report and his advice for first-time homebuyers. Divounguy explains that in many cities, it will take a lot more "to step on the first rung of the housing ladder." He notes that these cities are mostly concentrated in expensive coastal markets where homeownership rates are some of the lowest in the country. These markets are also where the most restrictive building regulations are, further squeezing the already-low supply available to buyers. He adds that across the country, "homeowners are sitting on near-record home equity and the real value of their mortgage interest payments has actually declined during the pandemic." Meanwhile, the wealth of renters pales in comparison to the wealth of homeowners as wages increased much slower than rents. Thus, Divounguy explains that "the benefits of buying are still there for most people." His advice to homebuyers is to "start early on your journey to homeownership," by getting pre-qualified and working with a loan officer to identify how to secure the lowest possible mortgage rate. For more expert insight and the latest market action, click here to watch this full episode of Wealth! This post was written by Melanie Riehl

  • Finally, Boost eWallet lets you top up funds from your Boost Bank account

    KUALA LUMPUR, July 26 — Boost Bank, Malaysia’s third digital bank, is the most complicated of the lot. While its “embedd...