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Are Investors Undervaluing AXA Equitable Holdings, Inc. (EQH) Right Now?

Zacks Equity Research
Huntsman (HUN) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.

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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One stock to keep an eye on is AXA Equitable Holdings, Inc. (EQH). EQH is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 5.35, which compares to its industry's average of 10.61. Over the past year, EQH's Forward P/E has been as high as 6.05 and as low as 3.81, with a median of 5.28.

EQH is also sporting a PEG ratio of 0.68. 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. EQH's industry currently sports an average PEG of 1.25. Within the past year, EQH's PEG has been as high as 0.72 and as low as 0.33, with a median of 0.45.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. EQH has a P/S ratio of 0.92. This compares to its industry's average P/S of 1.96.

These are only a few of the key metrics included in AXA Equitable Holdings, Inc.'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, EQH looks like an impressive value stock at the moment.


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