Should Value Investors Buy Ageas (AGESY) Stock?
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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
Ageas (AGESY) is a stock many investors are watching right now. AGESY is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock holds a P/E ratio of 5.28, while its industry has an average P/E of 7.83. AGESY's Forward P/E has been as high as 10.05 and as low as 4.99, with a median of 6.44, all within the past year.
Investors should also note that AGESY holds a PEG ratio of 0.38. 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. AGESY's industry has an average PEG of 0.68 right now. Over the past 52 weeks, AGESY's PEG has been as high as 1.04 and as low as 0.32, with a median of 0.70.
We should also highlight that AGESY has a P/B ratio of 0.87. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. AGESY's current P/B looks attractive when compared to its industry's average P/B of 2.39. AGESY's P/B has been as high as 1.06 and as low as 0.58, with a median of 0.88, over the past year.
Investors could also keep in mind Assurant (AIZ), an Insurance - Multi line stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Shares of Assurant are currently trading at a forward earnings multiple of 10.70 and a PEG ratio of 0.78 compared to its industry's P/E and PEG ratios of 7.83 and 0.68, respectively.
AIZ's Forward P/E has been as high as 12.25 and as low as 8.17, with a median of 10.19. During the same time period, its PEG ratio has been as high as 0.98, as low as 0.55, with a median of 0.78.
Additionally, Assurant has a P/B ratio of 1.74 while its industry's price-to-book ratio sits at 2.39. For AIZ, this valuation metric has been as high as 1.99, as low as 1.31, with a median of 1.60 over the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Ageas and Assurant are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, AGESY and AIZ feels like a great value stock at the moment.
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Ageas SA (AGESY) : Free Stock Analysis Report
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