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Are Investors Undervaluing Allianz (ALIZY) Right Now?

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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, 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.

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 stock to keep an eye on is Allianz (ALIZY - Free Report) . ALIZY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 8.89, which compares to its industry's average of 10.25. Over the last 12 months, ALIZY's Forward P/E has been as high as 17.69 and as low as -37.79, with a median of 9.04.

We should also highlight that ALIZY has a P/B ratio of 1.36. 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. ALIZY's current P/B looks attractive when compared to its industry's average P/B of 2.96. Within the past 52 weeks, ALIZY's P/B has been as high as 1.36 and as low as 0.77, with a median of 1.02.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. ALIZY has a P/S ratio of 0.52. This compares to its industry's average P/S of 0.79.

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


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