Are Investors Undervaluing These Finance Stocks Right Now?

BHF

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

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One company to watch right now is Athene . ATH is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.

Investors should also recognize that ATH has a P/B ratio of 0.72. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. ATH's current P/B looks attractive when compared to its industry's average P/B of 1.29. Within the past 52 weeks, ATH's P/B has been as high as 0.77 and as low as 0.39, with a median of 0.60.

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 popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. ATH has a P/S ratio of 0.57. This compares to its industry's average P/S of 0.95.

Finally, investors should note that ATH has a P/CF ratio of 3.62. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 11.48. ATH's P/CF has been as high as 7.05 and as low as 2.25, with a median of 3, all within the past year.

Another great Insurance - Life Insurance stock you could consider is Brighthouse Financial (BHF - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.

Furthermore, Brighthouse Financial holds a P/B ratio of 0.27 and its industry's price-to-book ratio is 1.29. BHF's P/B has been as high as 0.29, as low as 0.17, with a median of 0.25 over the past 12 months.

These are just a handful of the figures considered in Athene and Brighthouse Financial'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 ATH and BHF is an impressive value stock right now.

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