Back to top

Image: Bigstock

Is Ageas (AGESY) 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, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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 Ageas (AGESY - Free Report) . AGESY is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock holds a P/E ratio of 7.60, while its industry has an average P/E of 9.66. Over the past year, AGESY's Forward P/E has been as high as 10.21 and as low as 7.50, with a median of 8.67.

Investors should also note that AGESY holds a PEG ratio of 0.97. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. AGESY's industry currently sports an average PEG of 1.01. Within the past year, AGESY's PEG has been as high as 1.36 and as low as 0.95, with a median of 1.15.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. AGESY has a P/S ratio of 0.53. This compares to its industry's average P/S of 0.76.

Investors could also keep in mind Swiss Re (SSREY - Free Report) , an Insurance - Multi line stock with a Zacks Rank of # 2 (Buy) and Value grade of A.

Furthermore, Swiss Re holds a P/B ratio of 1.01 and its industry's price-to-book ratio is 1.65. SSREY's P/B has been as high as 1.49, as low as 0.99, with a median of 1.23 over the past 12 months.

These are just a handful of the figures considered in Ageas and Swiss Re's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that AGESY and SSREY is an impressive value stock right now.


See More Zacks Research for These Tickers


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


Swiss Re Ltd. (SSREY) - free report >>

Ageas SA (AGESY) - free report >>

Published in