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Is Aegon NV (AEG) 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.

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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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.

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 has a Forward P/E ratio of 4.50. This compares to its industry's average Forward P/E of 10.19. Over the last 12 months, AEG's Forward P/E has been as high as 6.97 and as low as 2.42, with a median of 5.41.

Investors should also note that AEG holds a PEG ratio of 0.84. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. AEG's industry has an average PEG of 1.13 right now. Over the past 52 weeks, AEG's PEG has been as high as 0.96 and as low as 0.45, with a median of 0.65.

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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