Why Allied World Assurance Company (AWH) Could Be a Top Value Stock Pick – Tale of the Tape

Zacks

Value investing is always a very popular strategy, and for good reason. After all, who doesn’t want to find stocks that have low PEs, solid outlooks, and decent dividends?

Fortunately for investors looking for this combination, we have identified a strong candidate which may be an impressive value; Allied World Assurance Company Holdings, AG (AWH).

Allied World Assurance Company in Focus

AWH may be an interesting play thanks to its forward PE of 3.8, its P/S ratio of0.54, and its decent dividend yield of 5.4%. These factors suggest that Allied World Assurance Company is a pretty good value pick, as investors have to pay a relatively low level for each dollar of earnings, and that AWH has decent revenue metrics to back up its earnings.

But before you think that Allied World Assurance Company is just a pure value play, it is important to note that it has been seeing solid activity on the earnings estimate front as well. For current year earnings, the consensus has gone up by 20.5% in the past 30 days, thanks to 4 upward revisions in the past one month compared to none moving lower.

This estimate strength is actually enough to push AWH to a Zacks Rank #1 (Strong Buy), suggesting it is poised to outperform. So really, Allied World Assurance Company is looking great from a number of angles thanks to its PE below 20, a P/S ratio below one, and a strong Zacks Rank, meaning that this company could be a great choice for value investors at this time.

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