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Are Investors Undervaluing Aegon NV (AEG) 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.

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.

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 company value investors might notice is Aegon NV (AEG - Free Report) . AEG is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 5.18 right now. For comparison, its industry sports an average P/E of 10.09. Over the past year, AEG's Forward P/E has been as high as 6.97 and as low as 2.42, with a median of 5.19.

Investors will also notice that AEG has a PEG ratio of 0.97. 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 1.12 right now. Over the past 52 weeks, AEG's PEG has been as high as 1.13 and as low as 0.45, with a median of 0.79.

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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