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Are Investors Undervaluing Aegon (AEG) 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.

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 company value investors might notice is Aegon (AEG - Free Report) . AEG is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 7, which compares to its industry's average of 7.97. AEG's Forward P/E has been as high as 115.70 and as low as 5.77, with a median of 10.66, all within the past year.

We should also highlight that AEG has a P/B ratio of 1.18. 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 company's current P/B looks solid when compared to its industry's average P/B of 2.42. Over the past 12 months, AEG's P/B has been as high as 1.31 and as low as 0.52, with a median of 0.86.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. AEG has a P/S ratio of 0.65. This compares to its industry's average P/S of 0.73.

Another great Insurance - Multi line stock you could consider is MetLife (MET - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.

MetLife is currently trading with a Forward P/E ratio of 7.27 while its PEG ratio sits at 0.56. Both of the company's metrics compare favorably to its industry's average P/E of 7.97 and average PEG ratio of 0.69.

MET's Forward P/E has been as high as 10.27 and as low as 5.86, with a median of 7.40. During the same time period, its PEG ratio has been as high as 5.74, as low as 0.22, with a median of 0.59.

Additionally, MetLife has a P/B ratio of 1.62 while its industry's price-to-book ratio sits at 2.42. For MET, this valuation metric has been as high as 2.47, as low as 1.16, with a median of 1.61 over the past year.

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


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