Should Value Investors Buy Aegon NV (AEG) Stock?

AEG

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

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.

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 value investors might notice is Aegon NV (AEG - Free Report) . AEG is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 5.75, which compares to its industry's average of 9.17. AEG's Forward P/E has been as high as 8.60 and as low as 5.19, with a median of 6.73, all within the past year.

Finally, our model also underscores that AEG has a P/CF ratio of 2.99. 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 6.95. AEG's P/CF has been as high as 3.86 and as low as 2.51, with a median of 3.37, all within the past year.

These are only a few of the key metrics included in Aegon NV'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, AEG looks like an impressive value stock at the moment.

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