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Are Investors Undervaluing AGNC Investment (AGNC) 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.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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.

AGNC Investment (AGNC - Free Report) is a stock many investors are watching right now. AGNC is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 5.12. This compares to its industry's average Forward P/E of 8.82. Over the past year, AGNC's Forward P/E has been as high as 7.64 and as low as 4.61, with a median of 5.90.

Another valuation metric that we should highlight is AGNC's P/B ratio of 0.94. The P/B ratio pits a stock's market value against 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 1.42. Over the past year, AGNC's P/B has been as high as 1.02 and as low as 0.70, with a median of 0.89.

Another great REIT and Equity Trust stock you could consider is Western Asset Mortgage Capital , which is a # 2 (Buy) stock with a Value Score of A.

Western Asset Mortgage Capital also has a P/B ratio of 0.58 compared to its industry's price-to-book ratio of 1.42. Over the past year, its P/B ratio has been as high as 0.78, as low as 0.43, with a median of 0.59.

These are only a few of the key metrics included in AGNC Investment and Western Asset Mortgage Capital strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, AGNC and WMC look like an impressive value stock at the moment.


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