Are Investors Undervaluing Ageas (AGESY) Right Now?
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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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.
One stock to keep an eye on is Ageas (AGESY). AGESY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 9.46, which compares to its industry's average of 9.88. Over the past 52 weeks, AGESY's Forward P/E has been as high as 9.74 and as low as 6.41, with a median of 8.28.
We also note that AGESY holds a PEG ratio of 0.81. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. AGESY's industry has an average PEG of 1.63 right now. AGESY's PEG has been as high as 1.36 and as low as 0.53, with a median of 0.90, all within the past year.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's 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 0.72. This compares to its industry's average P/S of 0.85.
If you're looking for another solid Insurance - Multi line value stock, take a look at Axa (AXAHY). AXAHY is a # 2 (Buy) stock with a Value score of A.
Shares of Axa currently holds a Forward P/E ratio of 8.58, and its PEG ratio is 1.10. In comparison, its industry sports average P/E and PEG ratios of 9.88 and 1.63.
Over the past year, AXAHY's P/E has been as high as 9.47, as low as 6.47, with a median of 7.89; its PEG ratio has been as high as 1.30, as low as 0.41, with a median of 0.90 during the same time period.
Axa also has a P/B ratio of 0.82 compared to its industry's price-to-book ratio of 3.08. Over the past year, its P/B ratio has been as high as 0.90, as low as 0.55, with a median of 0.68.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Ageas and Axa are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, AGESY and AXAHY feels like a great value stock at the moment.
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Ageas SA (AGESY) : Free Stock Analysis Report
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