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Are Investors Undervaluing Voya Financial (VOYA) 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, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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.

One company to watch right now is Voya Financial (VOYA - Free Report) . VOYA is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.

Investors should also note that VOYA holds a PEG ratio of 0.67. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. VOYA's industry has an average PEG of 0.71 right now. Over the past 52 weeks, VOYA's PEG has been as high as 6.82 and as low as 0.65, with a median of 2.90.

Another valuation metric that we should highlight is VOYA's P/B ratio of 1.26. The P/B ratio pits a stock's market value against 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 1.39. Over the past 12 months, VOYA's P/B has been as high as 1.26 and as low as 0.69, with a median of 1.01.

Finally, our model also underscores that VOYA has a P/CF ratio of 6.40. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. VOYA's P/CF compares to its industry's average P/CF of 9.96. VOYA's P/CF has been as high as 6.40 and as low as 2.51, with a median of 4.47, all within the past year.

These are only a few of the key metrics included in Voya Financial'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, VOYA looks like an impressive value stock at the moment.


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