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Is Allianz (ALIZY) Stock Undervalued Right Now?

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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.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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.

Allianz (ALIZY - Free Report) is a stock many investors are watching right now. ALIZY 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 9.16. This compares to its industry's average Forward P/E of 10.23. ALIZY's Forward P/E has been as high as 17.41 and as low as 7.04, with a median of 8.92, all within the past year.

Another valuation metric that we should highlight is ALIZY's P/B ratio of 1.48. 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 solid versus its industry's average P/B of 3.08. Within the past 52 weeks, ALIZY's P/B has been as high as 1.53 and as low as 0.77, with a median of 1.08.

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. ALIZY has a P/S ratio of 0.57. This compares to its industry's average P/S of 0.91.

Investors could also keep in mind Axa (AXAHY - Free Report) , an Insurance - Multi line stock with a Zacks Rank of # 2 (Buy) and Value grade of A.

Axa is trading at a forward earnings multiple of 8.45 at the moment, with a PEG ratio of 1.09. This compares to its industry's average P/E of 10.23 and average PEG ratio of 1.01.

AXAHY's price-to-earnings ratio has been as high as 9.33 and as low as 6.47, with a median of 7.89, while its PEG ratio has been as high as 1.30 and as low as 0.51, with a median of 1.05, all within the past year.

Additionally, Axa has a P/B ratio of 1.27 while its industry's price-to-book ratio sits at 3.08. For AXAHY, this valuation metric has been as high as 1.31, as low as 0.61, with a median of 0.94 over the past year.

Value investors will likely look at more than just these metrics, but the above data helps show that Allianz and Axa are likely undervalued currently. And when considering the strength of its earnings outlook, ALIZY and AXAHY sticks out as one of the market's strongest value stocks.


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