Back to top

Image: Bigstock

Is Aegon NV (AEG) Stock Undervalued Right Now?

Read MoreHide Full Article

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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.

Aegon NV (AEG - Free Report) is a stock many investors are watching right now. AEG 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 6.33, while its industry has an average P/E of 9.39. AEG's Forward P/E has been as high as 8.60 and as low as 5.19, with a median of 6.79, all within the past year.

Finally, investors should note that AEG has a P/CF ratio of 2.99. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. AEG's current P/CF looks attractive when compared to its industry's average P/CF of 7.12. Over the past year, AEG's P/CF has been as high as 4 and as low as 2.51, with a median of 3.38.

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.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Aegon NV (AEG) - free report >>

Published in