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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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
Aflac (AFL - Free Report) is a stock many investors are watching right now. AFL is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.
We also note that AFL holds a PEG ratio of 1.48. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. AFL's PEG compares to its industry's average PEG of 2.16. AFL's PEG has been as high as 3.93 and as low as 1.42, with a median of 2.35, all within the past year.
Another valuation metric that we should highlight is AFL's P/B ratio of 0.77. 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. AFL's current P/B looks attractive when compared to its industry's average P/B of 0.82. AFL's P/B has been as high as 1.37 and as low as 0.64, with a median of 0.97, over the past year.
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 prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. AFL has a P/S ratio of 1.17. This compares to its industry's average P/S of 1.22.
Finally, investors will want to recognize that AFL has a P/CF ratio of 4.34. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 5.73. AFL's P/CF has been as high as 9.43 and as low as 4.06, with a median of 6.36, all within the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Aflac is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, AFL feels like a great value stock at the moment.
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Should Value Investors Buy Aflac (AFL) Stock?
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
Aflac (AFL - Free Report) is a stock many investors are watching right now. AFL is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.
We also note that AFL holds a PEG ratio of 1.48. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. AFL's PEG compares to its industry's average PEG of 2.16. AFL's PEG has been as high as 3.93 and as low as 1.42, with a median of 2.35, all within the past year.
Another valuation metric that we should highlight is AFL's P/B ratio of 0.77. 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. AFL's current P/B looks attractive when compared to its industry's average P/B of 0.82. AFL's P/B has been as high as 1.37 and as low as 0.64, with a median of 0.97, over the past year.
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 prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. AFL has a P/S ratio of 1.17. This compares to its industry's average P/S of 1.22.
Finally, investors will want to recognize that AFL has a P/CF ratio of 4.34. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 5.73. AFL's P/CF has been as high as 9.43 and as low as 4.06, with a median of 6.36, all within the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Aflac is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, AFL feels like a great value stock at the moment.