Are Investors Undervaluing Ageas (AGESY) 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, value investing is easily one of the most popular ways to find great stocks in any market environment. 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 to watch right now is Ageas (AGESY). AGESY is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 6.17, which compares to its industry's average of 8.42. Over the last 12 months, AGESY's Forward P/E has been as high as 10.05 and as low as 5.95, with a median of 8.23.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. AGESY has a P/S ratio of 0.65. This compares to its industry's average P/S of 0.8.
Value investors will likely look at more than just these metrics, but the above data helps show that Ageas is likely undervalued currently. And when considering the strength of its earnings outlook, AGESY sticks out at as one of the market's strongest value stocks.
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