Are Investors Undervaluing Aegon (AEG) Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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 Aegon (AEG). 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 7.44 right now. For comparison, its industry sports an average P/E of 9.37. Over the past 52 weeks, AEG's Forward P/E has been as high as 115.70 and as low as 4.89, with a median of 6.97.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. AEG has a P/S ratio of 0.56. This compares to its industry's average P/S of 0.91.
Finally, we should also recognize that AEG has a P/CF ratio of 5.94. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. AEG's current P/CF looks attractive when compared to its industry's average P/CF of 10.74. Over the past year, AEG's P/CF has been as high as 6.22 and as low as 2.12, with a median of 3.49.
Another great Insurance - Multi line stock you could consider is CNO Financial Group (CNO), which is a # 2 (Buy) stock with a Value Score of A.
Additionally, CNO Financial Group has a P/B ratio of 2.24 while its industry's price-to-book ratio sits at 3.03. For CNO, this valuation metric has been as high as 2.30, as low as 0.53, with a median of 0.95 over the past year.
These are just a handful of the figures considered in Aegon and CNO Financial Group'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 AEG and CNO is an impressive value stock right now.
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Aegon NV (AEG) : Free Stock Analysis Report
CNO Financial Group, Inc. (CNO) : Free Stock Analysis Report
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