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Is Aflac (AFL) a Great Value Stock Right Now?

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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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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 Aflac (AFL - Free Report) . AFL is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.

AFL is also sporting a PEG ratio of 1.88. 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. AFL's industry currently sports an average PEG of 2.15. AFL's PEG has been as high as 3.48 and as low as 1.42, with a median of 1.83, all within the past year.

Finally, investors will want to recognize that AFL has a P/CF ratio of 5.59. 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. AFL's P/CF compares to its industry's average P/CF of 5.73. Within the past 12 months, AFL's P/CF has been as high as 9.26 and as low as 4.06, with a median of 6.27.

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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