Are Investors Undervaluing AGNC Investment (AGNC) 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.
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.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company to watch right now is AGNC Investment (AGNC). AGNC is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 6.57, while its industry has an average P/E of 10.66. Over the past 52 weeks, AGNC's Forward P/E has been as high as 7.46 and as low as 5.92, with a median of 6.68.
Investors should also recognize that AGNC has a P/B ratio of 0.87. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 1.17. Over the past year, AGNC's P/B has been as high as 1.01 and as low as 0.80, with a median of 0.91.
Finally, we should also recognize that AGNC has a P/CF ratio of 2.34. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. AGNC's current P/CF looks attractive when compared to its industry's average P/CF of 4.07. Over the past year, AGNC's P/CF has been as high as 174.33 and as low as 2.34, with a median of 10.81.
These figures are just a handful of the metrics value investors tend to look at, but they help show that AGNC Investment is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, AGNC feels like a great value stock at the moment.
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