Is Aflac (AFL) a Great Value Stock Right Now?

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

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 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 value investors might notice is Aflac (AFL). AFL is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.

Investors should also note that AFL holds a PEG ratio of 1.77. 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. AFL's PEG compares to its industry's average PEG of 2.15. Over the last 12 months, AFL's PEG has been as high as 3.48 and as low as 1.42, with a median of 2.06.

Finally, investors should note that AFL has a P/CF ratio of 5.24. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 5.73. Over the past 52 weeks, AFL's P/CF has been as high as 9.43 and as low as 4.06, with a median of 6.31.

These are only a few of the key metrics included in Aflac's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, AFL looks like an impressive value stock at the moment.

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