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Is Aegon NV (AEG) a Great Value Stock 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.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. 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.

One stock to keep an eye on is Aegon NV (AEG - Free Report) . AEG is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 5.47, which compares to its industry's average of 8.46. Over the past 52 weeks, AEG's Forward P/E has been as high as 9.70 and as low as 5.19, with a median of 7.43.

Finally, our model also underscores that AEG has a P/CF ratio of 2.69. 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. AEG's current P/CF looks attractive when compared to its industry's average P/CF of 7.41. AEG's P/CF has been as high as 4.14 and as low as 2.51, with a median of 3.53, all within the past year.

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


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