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Is AGNC Investment (AGNC) a Great Value Stock Right Now?

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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

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.

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.

AGNC Investment (AGNC - Free Report) is a stock many investors are watching right now. AGNC is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 5.35. This compares to its industry's average Forward P/E of 9.55. Over the past 52 weeks, AGNC's Forward P/E has been as high as 7.64 and as low as 4.61, with a median of 6.26.

We should also highlight that AGNC has a P/B ratio of 0.89. 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. AGNC's current P/B looks attractive when compared to its industry's average P/B of 1.30. Within the past 52 weeks, AGNC's P/B has been as high as 0.95 and as low as 0.70, with a median of 0.88.

If you're looking for another solid REIT and Equity Trust value stock, take a look at Annaly Capital Management (NLY - Free Report) . NLY is a # 2 (Buy) stock with a Value score of A.

Annaly Capital Management is trading at a forward earnings multiple of 6.96 at the moment, with a PEG ratio of 1.39. This compares to its industry's average P/E of 9.55 and average PEG ratio of 1.93.

NLY's Forward P/E has been as high as 8.53 and as low as 5.71, with a median of 7.51. During the same time period, its PEG ratio has been as high as 1.70, as low as 1.14, with a median of 1.44.

Annaly Capital Management also has a P/B ratio of 1.01 compared to its industry's price-to-book ratio of 1.30. Over the past year, its P/B ratio has been as high as 1.06, as low as 0.81, with a median of 0.98.

These figures are just a handful of the metrics value investors tend to look at, but they help show that AGNC Investment and Annaly Capital Management are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, AGNC and NLY feels like a great value stock at the moment.


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