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Should Value Investors Buy Aegon NV (AEG) Stock?

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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.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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.

Aegon NV (AEG - Free Report) is a stock many investors are watching right now. AEG is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 4.39, which compares to its industry's average of 8.10. Over the last 12 months, AEG's Forward P/E has been as high as 6.97 and as low as 2.42, with a median of 5.05.

Investors will also notice that AEG has a PEG ratio of 0.82. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. AEG's industry has an average PEG of 1.23 right now. AEG's PEG has been as high as 1.13 and as low as 0.45, with a median of 0.79, 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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