Why Employers Holdings (EIG) Could Be a Top Value Stock Pick – Tale of the Tape

ZacksValue 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; Employers Holdings, Inc. (EIG).

Employers Holdings in Focus

EIG may be an interesting play thanks to its forward PE of 17.16, its P/S ratio of 0.96, and its decent dividend yield of 1.02%. These factors suggest that Employers Holdings is a pretty good value pick, as investors have to pay a relatively low level for each dollar of earnings, and that EIG has decent revenue metrics to back up its earnings.

But before you think that Employers Holdings 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 8.7% in the past 30 days, thanks to 1 upward revision in the past one month compared to none lower.

This estimate strength is actually enough to push EIG to a Zacks Rank #1 (Strong Buy), suggesting it is poised to outperform. So really, Employers Holdings 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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