We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Is American International Group (AIG) a Great Value Stock Right Now?
Read MoreHide Full Article
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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 American International Group (AIG - Free Report) . AIG is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.
We also note that AIG holds a PEG ratio of 1.13. 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. AIG's industry has an average PEG of 1.75 right now. Over the past 52 weeks, AIG's PEG has been as high as 1.26 and as low as 0.91, with a median of 1.06.
Investors should also recognize that AIG has a P/B ratio of 0.74. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 1.65. Over the past year, AIG's P/B has been as high as 0.80 and as low as 0.58, with a median of 0.71.
Finally, investors should note that AIG has a P/CF ratio of 3.92. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 4.06. Over the past year, AIG's P/CF has been as high as 6.12 and as low as -308.72, with a median of 4.43.
Investors could also keep in mind The Hartford Financial Services Group (HIG - Free Report) , an Insurance - Multi line stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Shares of The Hartford Financial Services Group are currently trading at a forward earnings multiple of 10.39 and a PEG ratio of 1.48 compared to its industry's P/E and PEG ratios of 11.07 and 1.75, respectively.
Over the last 12 months, HIG's P/E has been as high as 13.31, as low as 9.35, with a median of 10.45, and its PEG ratio has been as high as 1.90, as low as 1.34, with a median of 1.49.
Furthermore, The Hartford Financial Services Group holds a P/B ratio of 1.42 and its industry's price-to-book ratio is 1.65. HIG's P/B has been as high as 1.44, as low as 1.16, with a median of 1.35 over the past 12 months.
These figures are just a handful of the metrics value investors tend to look at, but they help show that American International Group and The Hartford Financial Services Group are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, AIG and HIG feels like a great value stock at the moment.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Is American International Group (AIG) a Great Value Stock Right Now?
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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 American International Group (AIG - Free Report) . AIG is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.
We also note that AIG holds a PEG ratio of 1.13. 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. AIG's industry has an average PEG of 1.75 right now. Over the past 52 weeks, AIG's PEG has been as high as 1.26 and as low as 0.91, with a median of 1.06.
Investors should also recognize that AIG has a P/B ratio of 0.74. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 1.65. Over the past year, AIG's P/B has been as high as 0.80 and as low as 0.58, with a median of 0.71.
Finally, investors should note that AIG has a P/CF ratio of 3.92. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 4.06. Over the past year, AIG's P/CF has been as high as 6.12 and as low as -308.72, with a median of 4.43.
Investors could also keep in mind The Hartford Financial Services Group (HIG - Free Report) , an Insurance - Multi line stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Shares of The Hartford Financial Services Group are currently trading at a forward earnings multiple of 10.39 and a PEG ratio of 1.48 compared to its industry's P/E and PEG ratios of 11.07 and 1.75, respectively.
Over the last 12 months, HIG's P/E has been as high as 13.31, as low as 9.35, with a median of 10.45, and its PEG ratio has been as high as 1.90, as low as 1.34, with a median of 1.49.
Furthermore, The Hartford Financial Services Group holds a P/B ratio of 1.42 and its industry's price-to-book ratio is 1.65. HIG's P/B has been as high as 1.44, as low as 1.16, with a median of 1.35 over the past 12 months.
These figures are just a handful of the metrics value investors tend to look at, but they help show that American International Group and The Hartford Financial Services Group are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, AIG and HIG feels like a great value stock at the moment.