Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore 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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company to watch right now is American Equity Investment Life Holding . AEL is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.
Another notable valuation metric for AEL is its P/B ratio of 0.91. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. AEL's current P/B looks attractive when compared to its industry's average P/B of 1.12. AEL's P/B has been as high as 1.02 and as low as 0.44, with a median of 0.64, over the past year.
Finally, investors should note that AEL has a P/CF ratio of 1.97. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. AEL's P/CF compares to its industry's average P/CF of 7.12. Over the past year, AEL's P/CF has been as high as 4.79 and as low as 1.65, with a median of 3.27.
These are only a few of the key metrics included in American Equity Investment Life Holding's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, AEL looks like an impressive value stock at the moment.
Image: Bigstock
Is American Equity Investment Life Holding (AEL) a Great Value Stock Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore 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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company to watch right now is American Equity Investment Life Holding . AEL is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.
Another notable valuation metric for AEL is its P/B ratio of 0.91. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. AEL's current P/B looks attractive when compared to its industry's average P/B of 1.12. AEL's P/B has been as high as 1.02 and as low as 0.44, with a median of 0.64, over the past year.
Finally, investors should note that AEL has a P/CF ratio of 1.97. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. AEL's P/CF compares to its industry's average P/CF of 7.12. Over the past year, AEL's P/CF has been as high as 4.79 and as low as 1.65, with a median of 3.27.
These are only a few of the key metrics included in American Equity Investment Life Holding's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, AEL looks like an impressive value stock at the moment.