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Is Aegon NV (AEG) Stock Undervalued Right Now?

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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

Aegon NV (AEG - Free Report) is a stock many investors are watching right now. AEG is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 4.86, while its industry has an average P/E of 7.83. Over the last 12 months, AEG's Forward P/E has been as high as 6.97 and as low as 2.42, with a median of 4.86.

Investors will also notice that AEG has a PEG ratio of 0.91. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. AEG's PEG compares to its industry's average PEG of 1.18. Within the past year, AEG's PEG has been as high as 1.13 and as low as 0.45, with a median of 0.81.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Aegon NV is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, AEG feels like a great value stock at the moment.


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