U.S. Markets closed

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

Zacks Equity Research
Bank of Marin (BMRC) 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.

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.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader 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.

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 company to watch right now is AXA Equitable Holdings, Inc. (EQH). EQH is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 4.86, which compares to its industry's average of 10.43. Over the past 52 weeks, EQH's Forward P/E has been as high as 6.05 and as low as 3.81, with a median of 5.26.

We also note that EQH holds a PEG ratio of 0.60. 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. EQH's PEG compares to its industry's average PEG of 1.20. Within the past year, EQH's PEG has been as high as 0.72 and as low as 0.33, with a median of 0.48.

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. EQH has a P/S ratio of 0.97. This compares to its industry's average P/S of 1.86.

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.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
AXA Equitable Holdings, Inc. (EQH) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.