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Why American Equity (AEL) Could Be a Top Value Stock Pick

Zacks Equity Research
·2-min read

Value investing is always a very popular strategy, and for good reason. After all, who doesn’t want to find stocks that have low PEs, solid outlooks, and decent dividends?

Fortunately for investors looking for this combination, we have identified a strong candidate which may be an impressive value; American Equity Investment Life Holding Company AEL.

American Equity in Focus

AEL may be an interesting play thanks to its forward PE of 3.5, its P/S ratio of 0.5, and its decent dividend yield of 1.7%. These factors suggest that American Equity is a pretty good value pick, as investors have to pay a relatively low level for each dollar of earnings, and that AEL has decent revenue metrics to back up its earnings.

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American Equity Investment Life Holding Company PS Ratio (TTM)

American Equity Investment Life Holding Company PS Ratio (TTM)
American Equity Investment Life Holding Company PS Ratio (TTM)

American Equity Investment Life Holding Company ps-ratio-ttm | American Equity Investment Life Holding Company Quote

But before you think that American Equity is just a pure value play, it is important to note that it has been seeing solid activity on the earnings estimate front as well. For current year earnings, the consensus has gone up by 8.7% in the past 30 days, thanks to five upward revisions in the past one month compared to none lower.

This estimate strength is actually enough to push AEL to a Zacks Rank #2 (Buy), suggesting it is poised to outperform. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

So really, American Equity is looking great from a number of angles thanks to its PE below 20, a P/S ratio below one, and a strong Zacks Rank, meaning that this company could be a great choice for value investors at this time.

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American Equity Investment Life Holding Company (AEL) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research