Back to top

Image: Bigstock

Is Ageas (AGESY) Stock Undervalued Right Now?

Read MoreHide Full Article

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.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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.

One company value investors might notice is Ageas (AGESY - Free Report) . AGESY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 6.70. This compares to its industry's average Forward P/E of 8.68. Over the past year, AGESY's Forward P/E has been as high as 10.21 and as low as 6.54, with a median of 8.58.

We also note that AGESY holds a PEG ratio of 0.74. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. AGESY's PEG compares to its industry's average PEG of 1.11. Over the past 52 weeks, AGESY's PEG has been as high as 1.36 and as low as 0.73, with a median of 1.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. AGESY has a P/S ratio of 0.55. This compares to its industry's average P/S of 0.71.

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

Shares of Prudential currently holds a Forward P/E ratio of 8.73, and its PEG ratio is 0.97. In comparison, its industry sports average P/E and PEG ratios of 8.68 and 1.11.

PUK's Forward P/E has been as high as 18.11 and as low as 8.25, with a median of 11.77. During the same time period, its PEG ratio has been as high as 2.01, as low as 0.92, with a median of 1.31.

Additionally, Prudential has a P/B ratio of 1.76 while its industry's price-to-book ratio sits at 2.04. For PUK, this valuation metric has been as high as 3.56, as low as 1.64, with a median of 2.23 over the past year.

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


See More Zacks Research for These Tickers


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


Prudential Public Limited Company (PUK) - free report >>

Ageas SA (AGESY) - free report >>

Published in