Back to top

Image: Bigstock

Should Value Investors Buy Voya Financial (VOYA) Stock?

Read MoreHide Full Article

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

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.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

Voya Financial (VOYA - Free Report) is a stock many investors are watching right now. VOYA is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.

Investors should also recognize that VOYA has a P/B ratio of 1.20. The P/B is a method of comparing a stock's market value to 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 1.37. Within the past 52 weeks, VOYA's P/B has been as high as 1.20 and as low as 0.69, with a median of 0.99.

Finally, our model also underscores that VOYA has a P/CF ratio of 4.89. 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 10.04. Within the past 12 months, VOYA's P/CF has been as high as 4.93 and as low as 2.50, with a median of 4.37.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Voya Financial is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, VOYA 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:


Voya Financial, Inc. (VOYA) - free report >>

Published in