Key Takeaways RLI's product diversification, rate increases, and expanded distribution support strong top-line growth.RLI has delivered 29 straight years of underwriting profitability, underscoring operational strength.The insurer has raised regular dividends for 50 years, plus paid special dividends since 2011.Shares of RLI Corp. (RLI) have lost 9.6% in the past year against its industry, the Finance sector and the Zacks S&P 500 composite’s return of 7.5%, 16% and 14.3%, respectively.Closing at $68.40 on T ...

Core Insights - The article discusses the importance of the price-to-book (P/B) ratio in value investing, highlighting its utility in identifying undervalued stocks with strong growth potential [1][2]. Group 1: Understanding P/B Ratio - The P/B ratio is calculated by dividing the current stock price by the book value per share, indicating how much investors pay for each dollar of book value [2][6]. - A P/B ratio of less than one suggests that a stock is undervalued, while a ratio greater than one indicates it may be overvalued [6][7]. - The P/B ratio is particularly relevant for industries with tangible assets, such as finance and manufacturing, but may be misleading for companies with high R&D expenses or negative earnings [9][10]. Group 2: Investment Opportunities - Five stocks identified as having low P/B ratios include StoneCo (STNE), CVS Health (CVS), KT Corporation (KT), KB Financial Group (KB), and USANA Health Sciences (USNA) [11][16]. - These stocks have Zacks Rank 1 or 2 and Value Scores of A or B, with projected EPS growth rates ranging from 11.9% to 49.9%, indicating strong potential [11][17][19][20][21]. Group 3: Screening Parameters - Screening parameters for identifying attractive stocks include P/B ratio less than the industry median, P/S ratio less than the industry median, and P/E ratio less than the industry median [12][13]. - A PEG ratio of less than 1 indicates undervaluation relative to future growth prospects, while a minimum stock price of $5 and an average trading volume of at least 100,000 are also considered [14][15].

Core Insights - The Price-to-Book (P/B) ratio is a valuation metric that compares a company's market capitalization to its book value, helping investors identify undervalued stocks with strong fundamentals [1][2][6] - The P/B ratio is particularly useful in value investing, where investors seek stocks that are cheap yet fundamentally strong [1][10] - A P/B ratio of less than one indicates that a stock is trading below its book value, suggesting it may be undervalued, while a ratio above one may indicate overvaluation [6][8] Understanding Book Value - Book value represents the total value remaining for shareholders if a company were to liquidate its assets after settling all liabilities [4][5] - It is calculated by subtracting total liabilities from total assets, often equating to common stockholders' equity [5] P/B Ratio Analysis - The P/B ratio is calculated as market capitalization divided by book value of equity, providing insight into whether a stock is under- or overvalued [2][6] - Stocks with low P/B ratios and strong projected earnings growth are considered attractive investment opportunities [10][16] Screening Parameters for Investment - Stocks should have a P/B ratio lower than the industry median, a P/S ratio below the industry average, and a P/E ratio using F(1) estimates that is also lower than the industry median [12][13] - A PEG ratio of less than 1 indicates that a stock is undervalued relative to its growth prospects, while a minimum trading price of $5 and a substantial average trading volume are also recommended [14][15] Notable Stocks with Low P/B Ratios - CVS Health (CVS) has a projected 3-5 year EPS growth rate of 11.4% and holds a Zacks Rank of 2 with a Value Score of A [16] - Signet Jewelers (SIG) has a projected EPS growth rate of 12.2% and also holds a Zacks Rank of 2 with a Value Score of A [17] - KB Financial Group (KB) has a projected EPS growth rate of 12.33% and a Zacks Rank of 2 with a Value Score of B [18] - Affiliated Managers Group (AMG) has a projected EPS growth rate of 14.2% and a Zacks Rank of 2 with a Value Score of A [19] - PagSeguro Digital (PAGS) has a projected EPS growth rate of 11.3% and holds a Zacks Rank of 1 with a Value Score of A [21]

Core Viewpoint - Cincinnati Financial Corporation (CINF) is currently experiencing a short-term bullish trend, trading above its 200-day simple moving average, with a share price of $146.09 as of July 8, 2025, which is down 9.6% from its 52-week high of $161.75 [1]. Group 1: Financial Performance - CINF has a market capitalization of $22.83 billion, with an average trading volume of 0.6 million shares over the last three months [3]. - The company’s shares have gained 22.7% over the past year, outperforming the Finance sector and the S&P 500, which returned 19.1% and 10.2% respectively [4]. - The Zacks Consensus Estimate for CINF's 2025 revenues is $11.14 billion, indicating an 11.9% year-over-year improvement [9]. - Earnings have grown 15.8% over the past five years, with CINF beating earnings estimates in three of the last four quarters, averaging a surprise of 39.04% [9]. Group 2: Growth and Valuation - CINF is currently trading at a forward 12-month price-to-book ratio of 1.67X, above the industry average of 1.53X [10]. - The consensus estimates for 2026 earnings per share and revenues indicate increases of 55% and 8.1% respectively from the 2025 estimates [9]. - The average price target from six analysts for CINF is $152.83 per share, suggesting a potential upside of 45% from the last closing price [12]. Group 3: Dividend and Capital Management - CINF has a strong history of returning capital to shareholders, with 65 consecutive years of dividend increases and a current yield of 2.3%, which is above the industry average of 0.2% [17]. - The company’s free cash flow conversion has remained above 150% over the last few quarters, reflecting solid earnings [16]. Group 4: Strategic Advantages - CINF benefits from prudent pricing, an agent-centric model, and disciplined growth in Cincinnati Re, which supports premium growth [8][14]. - The Excess and Surplus line has performed well, benefiting from new business premiums and higher renewal pricing [15]. - The company is leveraging technology and data to identify new exposures in emerging businesses, which should enhance its growth prospects [15].

Core Insights - American Financial Group, Inc. (AFG) has underperformed compared to its industry and broader market indices over the past year, with a share price increase of 6.5% versus 16.9% for the Finance sector and 21.1% for the Zacks S&P 500 composite [1] - AFG's current market capitalization stands at $10.64 billion, with a recent share price of $127.43, which is 15.1% lower than its 52-week high of $150.19 [2] - The company is trading at a forward 12-month price-to-book ratio of 2.43X, significantly above the industry average of 1.55X, indicating an expensive valuation [3] - The Zacks Consensus Estimate projects AFG's revenues for 2025 to be $8.21 billion, reflecting a year-over-year growth of 2.1% [4] - AFG has maintained a combined ratio better than the industry average for over 20 years, with a target of 92.5% for 2025 [7] - The company has a strong dividend history, with 18 consecutive years of increases and a 10-year compound annual growth rate (CAGR) of 12.4% [16][17] - Analysts have shown bearish sentiment, with three out of four lowering their earnings estimates for 2025 and 2026 over the past 60 days [8] - The average price target from analysts suggests a potential upside of 5.5% from the last closing price, with a target of $132.20 per share [9] - AFG's return on equity (ROE) has improved, currently at 18.3%, compared to the industry average of 7.8% [11] - The company is well-positioned for growth due to new business opportunities, a favorable renewal rate environment, and strategic acquisitions [12][19]

Core Concept - The price-to-book (P/B) ratio is a key metric for value investors to identify undervalued stocks with potential for exceptional returns, calculated as market price per share divided by book value per share [1][5] Understanding Book Value - Book value represents the total value remaining for shareholders if a company were to liquidate its assets after settling all liabilities, calculated by subtracting total liabilities from total assets [3][4] P/B Ratio Insights - A P/B ratio under 1.0 indicates a potentially undervalued stock, while a ratio above 1.0 suggests overvaluation [5][6] - Stocks with low P/B ratios can indicate strong growth prospects, but a low ratio may also reflect weak asset returns or overstated assets [7][8] Screening Parameters for Value Stocks - Stocks should have a P/B ratio lower than the industry median, a P/S ratio below the industry median, and a P/E ratio using F(1) estimates lower than the industry median [11][12] - A PEG ratio under 1 indicates undervaluation relative to growth prospects, and stocks must trade at a minimum price of $5 [13] - High trading volume and favorable Zacks Rank (1 or 2) are also important criteria for screening [14] Identified Low P/B Stocks - Centene Corporation (CNC) has a projected 3-5 year EPS growth rate of 11.5% and holds a Zacks Rank of 2 with a Value Score of A [16] - CVS Health (CVS) has a projected EPS growth rate of 11.4% and also holds a Zacks Rank of 2 with a Value Score of A [16] - The ODP Corporation (ODP) has a projected EPS growth rate of 14% and holds a Zacks Rank of 1 with a Value Score of A [17] - StoneCo (STNE) has a projected EPS growth rate of 25.3% and holds a Zacks Rank of 2 with a Value Score of B [18] - Paysafe Limited (PSFE) has a projected EPS growth rate of 17.9% and holds a Zacks Rank of 1 with a Value Score of A [19]

Core Insights - Investing in stocks based on valuation metrics, particularly the price-to-earnings (P/E) and price-to-sales (P/S) ratios, is a strategic approach to identify potential investment opportunities [1][3] - The P/S ratio is especially useful for evaluating unprofitable companies or those in early growth stages, as it reflects the value of revenue generated [3][9] Price-to-Sales Ratio - A P/S ratio below 1 indicates that investors are paying less than a dollar for each dollar of revenue, making it a favorable investment [4] - The P/S ratio is preferred over the P/E ratio because sales figures are less susceptible to manipulation compared to earnings [5] - It is important to analyze the P/S ratio in conjunction with other financial metrics such as P/E, price-to-book, and debt-to-equity ratios before making investment decisions [6] Screening Parameters - Companies with a P/S ratio less than the median for their industry are considered better investments [7] - Additional screening parameters include a P/E ratio below the industry median, a price-to-book ratio below the industry median, and a debt-to-equity ratio below the industry median [8] Company Highlights - **JAKKS Pacific (JAKK)**: A multi-brand company benefiting from acquisitions and a strong international presence, focusing on online retailing and digital experiences. It has a Zacks Rank of 1 and a Value Score of A [10][11] - **Green Dot (GDOT)**: A leader in prepaid cards and Banking-as-a-Service, with a strong balance sheet and low debt. It has a Zacks Rank of 1 and a Value Score of A [12][13] - **Signet Jewelers (SIG)**: A leading retailer of diamond jewelry, demonstrating strength in bridal and fashion segments, with effective inventory management and cost-saving initiatives. It has a Zacks Rank of 2 and a Value Score of A [14][15] - **Gibraltar Industries (ROCK)**: Focused on operational improvements and benefiting from high demand in agricultural facilities. It has a Zacks Rank of 2 and a Value Score of A [16][17] - **Pfizer (PFE)**: A major pharmaceutical company expecting growth in non-COVID operational revenue driven by new product launches and acquisitions. It has a Zacks Rank of 2 and a Value Score of A [18][19]

Core Insights - Identifying value stocks requires a thorough analysis of key financial metrics such as earnings per share and sales growth to determine if a stock is undervalued [1] - The price-to-book (P/B) ratio is an important valuation tool that can help investors find low-priced stocks with high growth potential [2][6] Valuation Metrics - The P/B ratio is calculated as market capitalization divided by book value of equity, and a ratio less than one indicates that a stock is undervalued [2][6] - A P/B ratio greater than one suggests that a stock may be overvalued, while a ratio less than one could indicate weak returns or overstated assets [8][9] - Other important ratios to consider alongside P/B include price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity ratios for a comprehensive investment decision [10] Screening Parameters - Stocks with a P/B ratio lower than the industry median are considered to have potential for price appreciation [12] - A P/S ratio below the industry median indicates that the stock is attractively valued based on its sales [12] - A P/E ratio (F1) lower than the industry median is viewed favorably, as it suggests better valuation [13] - A PEG ratio of less than 1 indicates that a stock is undervalued relative to its growth prospects [14] - Stocks should have a current price of at least $5 and an average 20-day trading volume of 100,000 or more for liquidity [15] Notable Stocks - Centene Corporation (CNC) is a diversified healthcare company with a projected 3-5 year EPS growth rate of 11.5% and a Zacks Rank of 2 with a Value Score of A [16][17] - CVS Health Corporation (CVS) has a projected 3-5 year EPS growth rate of 11.4% and also holds a Zacks Rank of 2 with a Value Score of A [17] - Pfizer (PFE), a major pharmaceutical company, has a projected 3-5 year EPS growth rate of 9.0% and a Zacks Rank of 2 with a Value Score of A [18] - StoneCo (STNE), a financial technology provider, boasts a projected 3-5 year EPS growth rate of 26.3% and a Zacks Rank of 1 with a Value Score of B [19] - Paysafe Limited (PSFE) has a projected 3-5 year EPS growth rate of 17.9% and a Zacks Rank of 2 with a Value Score of A [21]

Core Concept - The article emphasizes the importance of the price-to-book (P/B) ratio as a valuation tool for identifying undervalued stocks with potential for exceptional returns, alongside more commonly used ratios like price-to-earnings (P/E) and price-to-sales (P/S) [1][5]. P/B Ratio Overview - The P/B ratio is calculated by dividing the market price per share by the book value of equity per share, indicating how much investors are willing to pay for a share relative to its book value [1][5]. - A P/B ratio of less than one suggests that a stock is undervalued, while a ratio greater than one indicates it may be overvalued [5][6]. Book Value Definition - Book value represents the total value remaining for shareholders if a company were to liquidate its assets after settling all liabilities, calculated by subtracting total liabilities from total assets [3][4]. Limitations of P/B Ratio - The P/B ratio is particularly useful for industries with tangible assets, such as finance and manufacturing, but may be misleading for companies with high R&D expenses or significant debt [8][9]. Screening Parameters for Investment - Stocks with a P/B ratio lower than the industry median are considered to have potential for price appreciation [10]. - Additional screening criteria include lower P/S and P/E ratios compared to industry medians, a PEG ratio of less than 1, a current price of at least $5, and a minimum average trading volume of 100,000 [11][12][13]. Identified Low P/B Stocks - Centene Corporation (CNC) is highlighted as a diversified healthcare company with a projected 3-5 year EPS growth rate of 11.5% and a Zacks Rank of 2 [14][15]. - CVS Health (CVS) is noted for its integrated pharmacy care services, with a projected EPS growth rate of 11.4% and a Zacks Rank of 2 [15]. - Pfizer (PFE), a major pharmaceutical company, has a projected EPS growth rate of 9.0% and a Zacks Rank of 2 [16]. - StoneCo (STNE), a financial technology provider, boasts a high projected EPS growth rate of 26.3% and a Zacks Rank of 1 [17]. - Banco Santander (SAN), the largest bank in Spain, has a projected EPS growth rate of 8.6% and a Zacks Rank of 2 [18].