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Should Value Investors Buy MetLife (MET) Stock?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One company to watch right now is MetLife (MET - Free Report) . MET is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 6.18. This compares to its industry's average Forward P/E of 7.85. Over the past year, MET's Forward P/E has been as high as 9.33 and as low as 3.86, with a median of 6.65.

Investors should also recognize that MET has a P/B ratio of 0.45. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 1.02. MET's P/B has been as high as 0.73 and as low as 0.33, with a median of 0.48, over the past year.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. MET has a P/S ratio of 0.51. This compares to its industry's average P/S of 0.78.

These are only a few of the key metrics included in MetLife's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, MET looks like an impressive value stock at the moment.


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