Advertisement
Singapore markets closed
  • Straits Times Index

    3,224.01
    -27.70 (-0.85%)
     
  • S&P 500

    5,248.49
    +44.91 (+0.86%)
     
  • Dow

    39,760.08
    +477.75 (+1.22%)
     
  • Nasdaq

    16,399.52
    +83.82 (+0.51%)
     
  • Bitcoin USD

    70,541.34
    +331.09 (+0.47%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • FTSE 100

    7,952.37
    +20.39 (+0.26%)
     
  • Gold

    2,233.10
    +20.40 (+0.92%)
     
  • Crude Oil

    82.62
    +1.27 (+1.56%)
     
  • 10-Yr Bond

    4.1960
    0.0000 (0.00%)
     
  • Nikkei

    40,168.07
    -594.66 (-1.46%)
     
  • Hang Seng

    16,541.42
    +148.58 (+0.91%)
     
  • FTSE Bursa Malaysia

    1,530.60
    -7.82 (-0.51%)
     
  • Jakarta Composite Index

    7,288.81
    -21.28 (-0.29%)
     
  • PSE Index

    6,903.53
    +5.36 (+0.08%)
     

Should Value Investors Buy Aegon (AEG) Stock?

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 Aegon (AEG). AEG 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 7.32 right now. For comparison, its industry sports an average P/E of 12.34. Over the last 12 months, AEG's Forward P/E has been as high as 8.87 and as low as 4.89, with a median of 6.90.

ADVERTISEMENT

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. AEG has a P/S ratio of 0.53. This compares to its industry's average P/S of 0.84.

Finally, investors will want to recognize that AEG has a P/CF ratio of 5.67. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 10.77. AEG's P/CF has been as high as 5.78 and as low as 2.12, with a median of 3.22, all within the past year.

Ping An Insurance Co. of China (PNGAY) may be another strong Insurance - Multi line stock to add to your shortlist. PNGAY is a # 2 (Buy) stock with a Value grade of A.

Ping An Insurance Co. of China sports a P/B ratio of 0.71 as well; this compares to its industry's price-to-book ratio of 3.04. In the past 52 weeks, PNGAY's P/B has been as high as 0.95, as low as 0.43, with a median of 0.68.

Value investors will likely look at more than just these metrics, but the above data helps show that Aegon and Ping An Insurance Co. of China are likely undervalued currently. And when considering the strength of its earnings outlook, AEG and PNGAY sticks out as one of the market's strongest value stocks.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Aegon NV (AEG) : Free Stock Analysis Report

Ping An Insurance Co. of China Ltd. (PNGAY) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research