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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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.
MetLife (MET) is a stock many investors are watching right now. MET is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 9.22, which compares to its industry's average of 10.48. Over the past 52 weeks, MET's Forward P/E has been as high as 9.22 and as low as 7.33, with a median of 8.08.
Investors should also note that MET holds a PEG ratio of 1.08. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. MET's PEG compares to its industry's average PEG of 1.16. Over the last 12 months, MET's PEG has been as high as 1.08 and as low as 0.58, with a median of 0.96.
We should also highlight that MET has a P/B ratio of 0.70. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. MET's current P/B looks attractive when compared to its industry's average P/B of 1.37. Over the past 12 months, MET's P/B has been as high as 0.85 and as low as 0.60, with a median of 0.74.
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 popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. MET has a P/S ratio of 0.7. This compares to its industry's average P/S of 1.08.
These are just a handful of the figures considered in MetLife's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that MET is an impressive value stock right now.
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