We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
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.
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.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One stock to keep an eye on 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 holds a P/E ratio of 8.68, while its industry has an average P/E of 10.36. Over the last 12 months, MET's Forward P/E has been as high as 9.77 and as low as 7.35, with a median of 8.58.
We also note that MET holds a PEG ratio of 1.17. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. MET's PEG compares to its industry's average PEG of 1.50. Within the past year, MET's PEG has been as high as 1.93 and as low as 0.83, with a median of 1.15.
We should also highlight that MET has a P/B ratio of 1.01. The P/B ratio is used to compare a stock's market value with 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 1.77. MET's P/B has been as high as 1.09 and as low as 0.69, with a median of 0.79, 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. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. MET has a P/S ratio of 0.77. This compares to its industry's average P/S of 0.83.
Finally, our model also underscores that MET has a P/CF ratio of 8.39. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. MET's P/CF compares to its industry's average P/CF of 8.44. Over the past year, MET's P/CF has been as high as 50.75 and as low as 7.69, with a median of 9.92.
Investors could also keep in mind Oscar Health (OSCR - Free Report) , an Insurance - Multi line stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Shares of Oscar Health are currently trading at a forward earnings multiple of -2.45 and a PEG ratio of -0.08 compared to its industry's P/E and PEG ratios of 10.36 and 1.50, respectively.
OSCR's Forward P/E has been as high as -2.07 and as low as -13.87, with a median of -5.45. During the same time period, its PEG ratio has been as high as -0.08, as low as -0.73, with a median of -0.34.
Oscar Health also has a P/B ratio of 0.80 compared to its industry's price-to-book ratio of 1.77. Over the past year, its P/B ratio has been as high as 3.39, as low as 0.74, with a median of 1.42.
These figures are just a handful of the metrics value investors tend to look at, but they help show that MetLife and Oscar Health are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, MET and OSCR feels like a great value stock at the moment.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Is MetLife (MET) a Great Value Stock Right Now?
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.
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.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One stock to keep an eye on 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 holds a P/E ratio of 8.68, while its industry has an average P/E of 10.36. Over the last 12 months, MET's Forward P/E has been as high as 9.77 and as low as 7.35, with a median of 8.58.
We also note that MET holds a PEG ratio of 1.17. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. MET's PEG compares to its industry's average PEG of 1.50. Within the past year, MET's PEG has been as high as 1.93 and as low as 0.83, with a median of 1.15.
We should also highlight that MET has a P/B ratio of 1.01. The P/B ratio is used to compare a stock's market value with 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 1.77. MET's P/B has been as high as 1.09 and as low as 0.69, with a median of 0.79, 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. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. MET has a P/S ratio of 0.77. This compares to its industry's average P/S of 0.83.
Finally, our model also underscores that MET has a P/CF ratio of 8.39. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. MET's P/CF compares to its industry's average P/CF of 8.44. Over the past year, MET's P/CF has been as high as 50.75 and as low as 7.69, with a median of 9.92.
Investors could also keep in mind Oscar Health (OSCR - Free Report) , an Insurance - Multi line stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Shares of Oscar Health are currently trading at a forward earnings multiple of -2.45 and a PEG ratio of -0.08 compared to its industry's P/E and PEG ratios of 10.36 and 1.50, respectively.
OSCR's Forward P/E has been as high as -2.07 and as low as -13.87, with a median of -5.45. During the same time period, its PEG ratio has been as high as -0.08, as low as -0.73, with a median of -0.34.
Oscar Health also has a P/B ratio of 0.80 compared to its industry's price-to-book ratio of 1.77. Over the past year, its P/B ratio has been as high as 3.39, as low as 0.74, with a median of 1.42.
These figures are just a handful of the metrics value investors tend to look at, but they help show that MetLife and Oscar Health are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, MET and OSCR feels like a great value stock at the moment.