Yahoo Finance Are Investors Undervaluing Aviva (AVVIY) Right Now?
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 use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 to watch right now is Aviva (AVVIY). AVVIY 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 8.35 right now. For comparison, its industry sports an average P/E of 9.07. Over the last 12 months, AVVIY's Forward P/E has been as high as 123.63 and as low as 5.78, with a median of 8.04.
Another notable valuation metric for AVVIY is its P/B ratio of 0.57. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. AVVIY's current P/B looks attractive when compared to its industry's average P/B of 1.24. AVVIY's P/B has been as high as 0.86 and as low as 0.44, with a median of 0.57, over the past year.
If you're looking for another solid Insurance - Life Insurance value stock, take a look at NN Group (NNGRY). NNGRY is a # 1 (Strong Buy) stock with a Value score of A.
NN Group is trading at a forward earnings multiple of 7.83 at the moment, with a PEG ratio of 4.28. This compares to its industry's average P/E of 9.07 and average PEG ratio of 0.90.
Over the last 12 months, NNGRY's P/E has been as high as 9.52, as low as 7.71, with a median of 8.41, and its PEG ratio has been as high as 5.13, as low as 3.78, with a median of 4.42.
NN Group also has a P/B ratio of 0.54 compared to its industry's price-to-book ratio of 1.24. Over the past year, its P/B ratio has been as high as 0.65, as low as 0.30, with a median of 0.50.
Value investors will likely look at more than just these metrics, but the above data helps show that Aviva and NN Group are likely undervalued currently. And when considering the strength of its earnings outlook, AVVIY and NNGRY sticks out as one of the market's strongest value stocks.
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Aviva PLC (AVVIY) : Free Stock Analysis Report
NN Group NV Unsponsored ADR (NNGRY) : Free Stock Analysis Report
