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Are Investors Undervaluing AGNC Investment (AGNC) Right Now?

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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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 AGNC Investment (AGNC - Free Report) . AGNC is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 6.48 right now. For comparison, its industry sports an average P/E of 10.34. AGNC's Forward P/E has been as high as 7.46 and as low as 5.92, with a median of 6.59, all within the past year.

Investors should also recognize that AGNC has a P/B ratio of 0.92. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 1.22. Over the past year, AGNC's P/B has been as high as 1.01 and as low as 0.83, with a median of 0.93.

Finally, we should also recognize that AGNC has a P/CF ratio of 3.26. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 4.02. Over the past 52 weeks, AGNC's P/CF has been as high as 170.27 and as low as 2.38, with a median of 10.29.

These figures are just a handful of the metrics value investors tend to look at, but they help show that AGNC Investment is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, AGNC feels like a great value stock at the moment.


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