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Is Aflac (AFL) Stock Undervalued Right Now?

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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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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.

One stock to keep an eye on is Aflac (AFL - Free Report) . AFL is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 10.41 right now. For comparison, its industry sports an average P/E of 10.52. Over the past 52 weeks, AFL's Forward P/E has been as high as 11.36 and as low as 7.56, with a median of 10.32.

We also note that AFL holds a PEG ratio of 2.08. 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 2.12. Over the past 52 weeks, AFL's PEG has been as high as 2.27 and as low as 1.51, with a median of 2.06.

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


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