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Are Investors Undervaluing Allianz (ALIZY) 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.

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.

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.

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

Investors should also recognize that ALIZY has a P/B ratio of 1.69. 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. ALIZY's current P/B looks attractive when compared to its industry's average P/B of 2.57. Over the past 12 months, ALIZY's P/B has been as high as 1.69 and as low as 0.77, with a median of 1.16.

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 prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. ALIZY has a P/S ratio of 0.62. This compares to its industry's average P/S of 0.71.

Prudential Financial (PRU - Free Report) may be another strong Insurance - Multi line stock to add to your shortlist. PRU is a # 2 (Buy) stock with a Value grade of A.

Prudential Financial is currently trading with a Forward P/E ratio of 6.94 while its PEG ratio sits at 0.53. Both of the company's metrics compare favorably to its industry's average P/E of 8.75 and average PEG ratio of 0.75.

Over the past year, PRU's P/E has been as high as 10.48, as low as 6.27, with a median of 8.37; its PEG ratio has been as high as 1.13, as low as 0.49, with a median of 2.44 during the same time period.

Furthermore, Prudential Financial holds a P/B ratio of 1.83 and its industry's price-to-book ratio is 2.57. PRU's P/B has been as high as 2.39, as low as 0.77, with a median of 1.78 over the past 12 months.

These are only a few of the key metrics included in Allianz and Prudential Financial strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, ALIZY and PRU look like an impressive value stock at the moment.


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Prudential Financial, Inc. (PRU) - free report >>

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