Should Value Investors Buy Ageas (AGESY) Stock?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
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.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
Ageas (AGESY) is a stock many investors are watching right now. AGESY is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock has a Forward P/E ratio of 9.24. This compares to its industry's average Forward P/E of 9.66. Over the past year, AGESY's Forward P/E has been as high as 10.05 and as low as 6.41, with a median of 8.36.
AGESY is also sporting a PEG ratio of 0.75. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. AGESY's industry currently sports an average PEG of 1.58. Over the past 52 weeks, AGESY's PEG has been as high as 1.36 and as low as 0.53, with a median of 0.84.
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. AGESY has a P/S ratio of 0.73. This compares to its industry's average P/S of 0.9.
Investors could also keep in mind Legal & General Group (LGGNY), an Insurance - Multi line stock with a Zacks Rank of # 1 (Strong Buy) and Value grade of A.
Legal & General Group also has a P/B ratio of 1.25 compared to its industry's price-to-book ratio of 3.10. Over the past year, its P/B ratio has been as high as 1.60, as low as 0.91, with a median of 1.24.
Value investors will likely look at more than just these metrics, but the above data helps show that Ageas and Legal & General Group are likely undervalued currently. And when considering the strength of its earnings outlook, AGESY and LGGNY sticks out as one of the market's strongest value stocks.
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