Here's Why NMI Holdings (NMIH) is a Strong Value Stock
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.
While you may have an investing style you rely on, finding great stocks is made easier with the Zacks Style Scores. These are complementary indicators that rate stocks based on value, growth, and/or momentum characteristics.
Why Investors Should Pay Attention to This Value Stock
Finding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to highlight the most attractive and 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 #3 (Hold) stock, with a Value Style Score of B and VGM Score of B. Shares are currently trading at a forward P/E of 8X for the current fiscal year compared to the Insurance - Property and Casualty industry's P/E of 12X. Additionally, NMIH has a PEG Ratio of 1.3 and a Price/Cash Flow ratio of 8.1X. Value investors should also note NMIH's Price/Sales ratio of 4.5X.
Many value investors pay close attention to a company's earnings as well. For NMIH, four analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.27 to $4.86 per share for 2025. Per share NMIH boasts an average earnings surprise of 8.2%.
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.
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NMI Holdings Inc (NMIH) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).