Back to top

Image: Bigstock

Are Investors Undervaluing Brighthouse Financial (BHF) Right Now?

Read MoreHide Full Article

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.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. 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.

One company to watch right now is Brighthouse Financial (BHF - Free Report) . BHF is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 3.38, while its industry has an average P/E of 7.47. Over the last 12 months, BHF's Forward P/E has been as high as 8 and as low as 1.65, with a median of 3.11.

We also note that BHF holds a PEG ratio of 0.39. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. BHF's industry currently sports an average PEG of 0.77. BHF's PEG has been as high as 0.74 and as low as 0.34, with a median of 0.39, all within the past year.

Value investors will likely look at more than just these metrics, but the above data helps show that Brighthouse Financial is likely undervalued currently. And when considering the strength of its earnings outlook, BHF sticks out at as one of the market's strongest value stocks.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Brighthouse Financial, Inc. (BHF) - free report >>

Published in