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Are Investors Undervaluing Brighthouse Financial (BHF) Right Now?

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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.

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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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.

Brighthouse Financial (BHF) is a stock many investors are watching right now. BHF 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 2.77, which compares to its industry's average of 6.40. Over the past year, BHF's Forward P/E has been as high as 4 and as low as 2.60, with a median of 3.45.

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 prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. BHF has a P/S ratio of 0.35. This compares to its industry's average P/S of 0.82.

Finally, we should also recognize that BHF has a P/CF ratio of 3.76. 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. BHF's current P/CF looks attractive when compared to its industry's average P/CF of 9.55. Over the past 52 weeks, BHF's P/CF has been as high as 5.08 and as low as -13.33, with a median of -0.92.

Another great Insurance - Life Insurance stock you could consider is China Life (LFC), which is a # 2 (Buy) stock with a Value Score of A.

Shares of China Life are currently trading at a forward earnings multiple of 5.88 and a PEG ratio of 0.67 compared to its industry's P/E and PEG ratios of 6.40 and 0.67, respectively.


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Brighthouse Financial, Inc. (BHF) : Free Stock Analysis Report
 
China Life Insurance Company Limited (LFC) : Free Stock Analysis Report
 
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