Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 4 stocks made the list for top value stocks in the Insurance - Multiline & Brokers industry. Those looking for value stocks to add to their portfolio may want to use this list as a starting point for further investment research.

Latest Insurance - Multiline & Brokers Stock News

Before choosing which top Insurance - Multiline & Brokers stock to buy, be sure to conduct proper due diligence: analyze various financial metrics and look at historical data, public statements and news coverage.

Insurance brokers stand to continue strong in the aftermath of heavy worldwide losses, specifically from Covid-19. The scale to which the companies can continue is directly tied to the economic recovery from the pandemic, mainly the demand for brokering and consulting services. Many of the companies in this sub-industry rely on the revenues from their consulting services, which are expected to regain traction coming as economic activity ramps up past pre-pandemic levels. Many companies refrained from projects as cost savings measures this past year, something that is unlikely to happen again given the decline in infection rates and the increase of total population vaccinations. Margins for the industry are expected to increase over the historical levels, as many insurance companies are still employing cost savings measures to offset the losses suffered in 2020. Many companies in this sub-industry also engage in healthcare and benefits consulting, a figure that is poised to rise given the legislation proposed by the Biden administration. The commitment to the Affordable Care Act is seen as a positive, but there are still regulatory hurtles that need to be jumped for these changes to be implemented. According to a report published by Research Dive, the global insurance brokerage market is projected to register a revenue of $515.3 billion at a compound annual growth rate (CAGR) of 5.4% during the forecast period (2021-2028), increasing from $317.9 billion in 2020.

Why Focus on Undervalued Insurance - Multiline & Brokers Stocks?

Value investors seek to buy stocks at a discount to their intrinsic value. Long-term returns show that such strategies are advantageous. Value stocks, as a group, tend to outperform growth stocks over extended periods of time. Typically, value investors perform financial analysis of numerous metrics, don’t follow the herd and are long-term investors.

AAII’s A+ Investor Value Grade is derived from a stock’s Value Score. The Value Score is the percentile rank of the average of the percentile ranks of the price-to-sales ratio, price-earnings ratio, enterprise-value-to-EBITDA (EV/EBITDA) ratio, shareholder yield, price-to-book-value ratio and price-to-free-cash-flow ratio. The score is variable, meaning it can consider all six ratios or, should any of the six ratios not be valid, the remaining ratios that are valid. To be assigned a Value Score, stocks must have a valid (non-null) ratio and corresponding ranking for at least two of the six valuation ratios.

What Goes Into AAII’s Value Grade?

Stock evaluation requires access to huge amounts of data as well as the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movement. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors with that task.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A–F grades for more than just value. It is possible for a stock to appear cheap based on one valuation metric but appear expensive on another. It is also possible for one valuation ratio to be associated with outperforming stocks during certain periods of time but not others. Some stocks may even have null values for certain metrics like the price-earnings ratio or the price-to-book ratio but not others. An example of this would be a company with losses instead of profits or a negative book value because of heavy borrowing. Negative earnings or book value result in non-meaningful ratios that are left blank or null.

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4 Undervalued Insurance - Multiline & Brokers Stocks

Of course, there are countless value stocks that are worth mentioning, but this is a concise list of the top 4 undervalued stocks in the Insurance - Multiline & Brokers industry for Thursday, June 08, 2023. Let’s take a closer look at their individual scores to see how they measure up against each other and the Insurance - Multiline & Brokers industry median.

The Value Grade is assigned based on how each stock’s composite valuation compares to all other stocks.

The process for assigning grades starts with each variable for a given stock. The percentile rankings for all valid ratios that a stock has are calculated. So, for instance, a stock could have a price-to-book ranking in the 43rd percentile, a price-earnings ranking in the 67th percentile, a price-to-sales ranking in the 23rd percentile, etc. Then, those rankings are averaged for each stock. (A minimum of two valid variables are required, though all six will be used if available.)

Once the average of the individual variables is calculated, that average is ranked against all stocks. Put another way, each stock’s composite valuation is compared to all other stocks. These ranks are then sorted into quintiles from the cheapest 20% (a grade of A) to the most expensive 20% (a grade of F).

As always, we recommend that you conduct proper due diligence and research before investing in any security. We also suggest that investors utilize numerous grades, not just value, when it comes to deciding whether a company is a good fit for their allocation needs.

Assurant, Inc.’s Value Grade

Value Grade:

Assurant, Inc. is a global provider of lifestyle and housing solutions that support, protect, and connects consumer purchases. The Company operates in North America, Latin America, Europe, and Asia Pacific through two segments: Global Lifestyle and Global Housing. The Global Lifestyle segment provides mobile device solutions and extended service products and related services for mobile devices, consumer electronics and appliances (Connected Living); vehicle protection and related services (Global Automotive); and credit protection and other insurance products (Global Financial Services and Other). The Global Housing segment provides lender-placed homeowners insurance, lender-placed manufactured housing insurance and lender-placed flood insurance (Lender-placed Insurance); renters insurance and related products (Multifamily Housing); and voluntary manufactured housing insurance, voluntary homeowners insurance and other specialty products (Specialty and Other).

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Assurant, Inc. has a Value Score of 65, which is considered to be undervalued.

When you look at Assurant, Inc.’s price-to-sales ratio at 0.65 compared to the industry median at 1.04, this company has a lower price relative to revenue compared to its peers. This could make Assurant, Inc.’s stock more attractive for value investors.

Assurant, Inc.’s price-earnings ratio is 28.28 compared to the industry median at 20.91. This means it has a higher share price relative to earnings compared to its peers. This could make Assurant, Inc. less attractive for value investors.

Now, let’s assess Assurant, Inc.’s EV/EBITDA ratio, also known as enterprise multiple. At 11.5, when compared to the industry median of 13.6, the company may be considered undervalued in relation to its peers. Value investors could use the enterprise multiple to identify stocks that are considered overvalued or undervalued relative to their industry.

Shareholder yield is the sum of a stock’s dividend yield (paid over previous 12 months minus special dividends) and the percentage of net share buybacks over the previous 12 months. Assurant, Inc.’s shareholder yield is higher than its industry median ratio of 2.94%. Value investors may look for an attractive shareholder yield because it can be a powerful tool for identifying if the company has a good management team.

As one of the most common value metrics, the price-to-book ratio evaluates a company’s current market price relative to its book value. Assurant, Inc.’s price-to-book ratio is higher than its industry median ratio of 1.51. This could make Assurant, Inc. less attractive to investors looking for a new addition to their portfolio.

Lastly, let’s take a look at Assurant, Inc.’s price-to-free-cash-flow ratio (P/FCF), which can indicate a company’s market value relative to its operating cash flow. Assurant, Inc.’s price-to-free-cash-flow ratio is lower than its industry median ratio of 18.01. This could make Assurant, Inc. more attractive because the lower P/FCF ratio indicates that Assurant, Inc. is undervalued. The P/FCF ratio metric can also be viewed over a long-term time frame to see if the company's cash flow to share price value is generally improving or worsening.

AXIS Capital Holdings Ltd’s Value Grade

Value Grade:

AXIS Capital Holdings Limited is a holding company. The Company provides a range of specialty lines insurance and treaty reinsurance to its clients on a worldwide basis, through its subsidiaries and branch networks based in Bermuda, the United States, Europe, Singapore and Canada. Its underwriting operations are organized around two global underwriting platforms: AXIS Insurance and AXIS Re. The Company operates through two segments: Insurance and Reinsurance. Its Insurance segment offers specialty insurance products across various business lines. The product lines in this segment are property, marine, terrorism, aviation, credit and political risk, professional lines, liability, and accident and health. Its Reinsurance segment provides treaty reinsurance to insurance companies on a worldwide basis. The product lines in this segment are catastrophe, property, credit and surety, professional lines, motor, liability, engineering, agriculture, marine and aviation, and accident and health.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

AXIS Capital Holdings Ltd has a Value Score of 78, which is considered to be undervalued.

AXIS Capital Holdings Ltd’s price-earnings ratio is 20.9 compared to the industry median at 20.9. This means that it has a higher price relative to its earnings compared to its peers. This makes AXIS Capital Holdings Ltd fairly attractive for value investors.

AXIS Capital Holdings Ltd’s price-to-book ratio is higher than its peers. This could make AXIS Capital Holdings Ltd less attractive for value investors when compared to the industry median at 1.51.

You can read more about AXIS Capital Holdings Ltd’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

eHealth Inc’s Value Grade

Value Grade:

eHealth, Inc. provides a health insurance marketplace with a technology and service platform that provides consumer engagement, education and health insurance enrollment solutions. The Company operates through two segments: Medicare and Individual, Family and Small Business. The Medicare segment consists primarily of its sales of Medicare-related health insurance plans, including Medicare advantage, Medicare supplement and Medicare part d prescription drug plans, and ancillary products sold to its Medicare-eligible customers. Its Medicare ecommerce platform can be accessed through its websites www.eHealthMedicare.com, www.PlanPrescriber.com and www.GoMedigap.com, and telephonic enrollment capabilities. The Individual, Family and Small Business segment consists primarily of its sale of individual and family and small business health insurance plans and ancillary products sold to its non-Medicare-eligible customers. It also markets a variety of ancillary products.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

eHealth Inc has a Value Score of 80, which is considered to be undervalued.

eHealth Inc’s price-to-book ratio is higher than its peers. This could make eHealth Inc less attractive for value investors when compared to the industry median at 1.51.

You can read more about eHealth Inc’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

GoHealth Inc’s Value Grade

Value Grade:

GoHealth, Inc. is a Medicare-focused digital health company. Its technology platform leverages modern machine-learning algorithms powered by insurance behavioral data to reimagine the optimal process for helping individuals find the health insurance plan for their specific needs. The Company operates its business in four segments: Medicare-Internal, Medicare-External, Individual and Family Plans (IFP) and Other-Internal, and IFP and Other-External. The Medicare segments focus on sales of Medicare Advantage, Medicare Supplement, Medicare prescription drug plans, and Medicare Special Needs Plans (SNPs) for multiple health plan partners. The Medicare Internal and External segments primarily consist of sales of products and plans through agents or external agencies. The IFP and Other segments focuses on sales of individual and family plans, dental plans, vision plans, and other ancillary plans to individuals that are not Medicare-eligible. It offers services through its Encompass Platform.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

GoHealth Inc has a Value Score of 68, which is considered to be undervalued.

GoHealth Inc’s price-to-book ratio is higher than its peers. This could make GoHealth Inc less attractive for value investors when compared to the industry median at 1.51.

You can read more about GoHealth Inc’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Other Insurance - Multiline & Brokers Stock Grades

Value is just one of the five Stock Grades included in our A+ Investor service. AAII members can see the top-graded stocks—those with grades of A or B for value, growth, momentum, earnings estimate revisions and quality—on the A+ Stock Grades Screener.

Also, if you want full access to all of AAII’s premium services, you can subscribe to one convenient bundled plan called AAII Platinum where you can try out A+ Investor, AAII Dividend Investing, the Stock Superstars Report, Growth Investing and VMQ Stocks. With the other premium services, you can dive deep into additional metrics, portfolios, commentary and information about Insurance - Multiline & Brokers stocks as well as other industrys.

Choosing Which of the 4 Best Insurance - Multiline & Brokers Stocks Is Right for You

Choosing which value stocks to invest in will ultimately depend on your individual goals and allocation; however, comparing similar value stocks in the same industry can help you analyze which might be better investments for you in the long run. So, let’s take a look at the Value Grade for all of our stocks.

• Assurant, Inc. stock has a Value Grade of B.
• AXIS Capital Holdings Ltd stock has a Value Grade of B.
• eHealth Inc stock has a Value Grade of B.
• GoHealth Inc stock has a Value Grade of B.

Now that you have a bit more background about each of the 4 undervalued stocks in the Insurance - Multiline & Brokers industry as well as their overall grades, it’s time for you to conduct additional research to see if these could fit your portfolio needs based on your goals and risk tolerance. AAII can help you figure out both and identify which investments align with what works best for you.

We do so through a program of education that teaches you to invest for yourself and become an effective manager of your own wealth—no more relying on others for your financial independence. You can rely on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis that makes you a better investor.

A+ Investor adds to that qualitative teaching by giving you a powerful data suite that helps you whittle down investment decisions to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.

Additional Resources About Insurance - Multiline & Brokers Stocks

Want to learn more about Insurance - Multiline & Brokers stocks to see if they could be the right investment for you? Check out some additional resources and articles to help you on your financial journey.

• 4 Undervalued Insurance - Multiline & Brokers Stocks for Thursday, June 08
• 3 Undervalued Insurance - Multiline & Brokers Stocks for Wednesday, June 07
• Why Genworth Financial Inc’s (GNW) Stock Is Up 5.05%
• 4 Undervalued Insurance - Multiline & Brokers Stocks for Tuesday, June 06

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