Should Value Investors Buy MetLife (MET) Stock?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
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 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.
One company value investors might notice is MetLife (MET). MET is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 9.03, while its industry has an average P/E of 10.94. Over the last 12 months, MET's Forward P/E has been as high as 10.25 and as low as 5.89, with a median of 7.34.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. MET has a P/S ratio of 0.85. This compares to its industry's average P/S of 1.21.
These are only a few of the key metrics included in MetLife'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, MET 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
MetLife, Inc. (MET) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
