Yahoo Finance Are Investors Undervaluing Axa (AXAHY) 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.
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.
Axa (AXAHY) is a stock many investors are watching right now. AXAHY is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 7.92. This compares to its industry's average Forward P/E of 8.38. Over the past 52 weeks, AXAHY's Forward P/E has been as high as 9.12 and as low as 6.47, with a median of 7.89.
Another valuation metric that we should highlight is AXAHY's P/B ratio of 1.26. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. AXAHY's current P/B looks attractive when compared to its industry's average P/B of 2.50. AXAHY's P/B has been as high as 1.33 and as low as 0.61, with a median of 1, over the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Axa is likely undervalued currently. And when considering the strength of its earnings outlook, AXAHY sticks out at as one of the market's strongest value stocks.
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