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Is American Financial Group (AFG) Stock Undervalued 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 use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One stock to keep an eye on is American Financial Group (AFG - Free Report) . AFG is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 11.13, while its industry has an average P/E of 27.10. Over the past year, AFG's Forward P/E has been as high as 1,155.88 and as low as 11.13, with a median of 13.97.

Finally, investors should note that AFG has a P/CF ratio of 5.41. 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 6.60. Within the past 12 months, AFG's P/CF has been as high as 6.42 and as low as 4.13, with a median of 5.26.

Another great Insurance - Property and Casualty stock you could consider is Chubb Limited (CB - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.

Shares of Chubb Limited currently holds a Forward P/E ratio of 11.34, and its PEG ratio is 1.13. In comparison, its industry sports average P/E and PEG ratios of 27.10 and 2.31.

CB's price-to-earnings ratio has been as high as 16.31 and as low as 11.30, with a median of 13.68, while its PEG ratio has been as high as 1.63 and as low as 1.13, with a median of 1.37, all within the past year.

Chubb Limited sports a P/B ratio of 1.52 as well; this compares to its industry's price-to-book ratio of 1.24. In the past 52 weeks, CB's P/B has been as high as 1.62, as low as 1.26, with a median of 1.43.

Value investors will likely look at more than just these metrics, but the above data helps show that American Financial Group and Chubb Limited are likely undervalued currently. And when considering the strength of its earnings outlook, AFG and CB sticks out as one of the market's strongest value stocks.


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