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Is Brighthouse Financial (BHF) a Great Value Stock Right Now?

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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.

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.

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 stock to keep an eye on is Brighthouse Financial (BHF - Free Report) . BHF is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 3.32 right now. For comparison, its industry sports an average P/E of 9.14. Over the last 12 months, BHF's Forward P/E has been as high as 8 and as low as 1.65, with a median of 3.90.

Investors should also note that BHF holds a PEG ratio of 0.39. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. BHF's PEG compares to its industry's average PEG of 0.88. Over the last 12 months, BHF's PEG has been as high as 0.74 and as low as 0.30, with a median of 0.37.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. BHF has a P/S ratio of 0.21. This compares to its industry's average P/S of 0.61.

These are just a handful of the figures considered in Brighthouse Financial's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that BHF is an impressive value stock right now.


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