Yahoo Finance Is American International Group (AIG) Stock Undervalued Right Now?
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.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 American International Group (AIG). AIG is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 9.65, while its industry has an average P/E of 10.13. Over the past year, AIG's Forward P/E has been as high as 14.69 and as low as 7.98, with a median of 9.96.
AIG is also sporting a PEG ratio of 0.97. 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. AIG's PEG compares to its industry's average PEG of 1.11. Over the past 52 weeks, AIG's PEG has been as high as 1.47 and as low as 0.84, with a median of 1.03.
Another valuation metric that we should highlight is AIG's P/B ratio of 1.14. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 3.07. AIG's P/B has been as high as 1.18 and as low as 0.66, with a median of 0.89, over the past year.
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. AIG has a P/S ratio of 0.8. This compares to its industry's average P/S of 0.91.
Investors could also keep in mind Axa (AXAHY), an Insurance - Multi line stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Axa is currently trading with a Forward P/E ratio of 8.35 while its PEG ratio sits at 1.07. Both of the company's metrics compare favorably to its industry's average P/E of 10.13 and average PEG ratio of 1.11.
AXAHY's Forward P/E has been as high as 9.22 and as low as 6.47, with a median of 7.89. During the same time period, its PEG ratio has been as high as 1.30, as low as 0.51, with a median of 1.05.
Additionally, Axa has a P/B ratio of 1.25 while its industry's price-to-book ratio sits at 3.07. For AXAHY, this valuation metric has been as high as 1.31, as low as 0.61, with a median of 0.95 over the past year.
These are only a few of the key metrics included in American International Group and Axa strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, AIG and AXAHY look like an impressive value stock at the moment.
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American International Group, Inc. (AIG) : Free Stock Analysis Report
Axa Sa (AXAHY) : Free Stock Analysis Report
