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Are Investors Undervaluing American International Group (AIG) 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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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.
One company to watch right now is American International Group (AIG - Free Report) . AIG is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 8.05. This compares to its industry's average Forward P/E of 8.63. AIG's Forward P/E has been as high as 14.69 and as low as 7.26, with a median of 9.29, all within the past year.
Investors should also recognize that AIG has a P/B ratio of 0.93. 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. This company's current P/B looks solid when compared to its industry's average P/B of 2.59. AIG's P/B has been as high as 1.17 and as low as 0.68, with a median of 0.93, over the past year.
Finally, investors should note that AIG has a P/CF ratio of 3.63. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 6.41. AIG's P/CF has been as high as 3.67 and as low as 1.96, with a median of 2.59, all within the past year.
Allianz (ALIZY - Free Report) may be another strong Insurance - Multi line stock to add to your shortlist. ALIZY is a # 2 (Buy) stock with a Value grade of A.
Shares of Allianz are currently trading at a forward earnings multiple of 8.99 and a PEG ratio of 2.50 compared to its industry's P/E and PEG ratios of 8.63 and 0.80, respectively.
ALIZY's Forward P/E has been as high as 13.20 and as low as 7.04, with a median of 8.88. During the same time period, its PEG ratio has been as high as 3.68, as low as 1.96, with a median of 2.46.
Furthermore, Allianz holds a P/B ratio of 1.64 and its industry's price-to-book ratio is 2.59. ALIZY's P/B has been as high as 1.73, as low as 0.77, with a median of 1.21 over the past 12 months.
These figures are just a handful of the metrics value investors tend to look at, but they help show that American International Group and Allianz are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, AIG and ALIZY feels like a great value stock at the moment.
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Are Investors Undervaluing American International Group (AIG) Right Now?
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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.
One company to watch right now is American International Group (AIG - Free Report) . AIG is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 8.05. This compares to its industry's average Forward P/E of 8.63. AIG's Forward P/E has been as high as 14.69 and as low as 7.26, with a median of 9.29, all within the past year.
Investors should also recognize that AIG has a P/B ratio of 0.93. 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. This company's current P/B looks solid when compared to its industry's average P/B of 2.59. AIG's P/B has been as high as 1.17 and as low as 0.68, with a median of 0.93, over the past year.
Finally, investors should note that AIG has a P/CF ratio of 3.63. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 6.41. AIG's P/CF has been as high as 3.67 and as low as 1.96, with a median of 2.59, all within the past year.
Allianz (ALIZY - Free Report) may be another strong Insurance - Multi line stock to add to your shortlist. ALIZY is a # 2 (Buy) stock with a Value grade of A.
Shares of Allianz are currently trading at a forward earnings multiple of 8.99 and a PEG ratio of 2.50 compared to its industry's P/E and PEG ratios of 8.63 and 0.80, respectively.
ALIZY's Forward P/E has been as high as 13.20 and as low as 7.04, with a median of 8.88. During the same time period, its PEG ratio has been as high as 3.68, as low as 1.96, with a median of 2.46.
Furthermore, Allianz holds a P/B ratio of 1.64 and its industry's price-to-book ratio is 2.59. ALIZY's P/B has been as high as 1.73, as low as 0.77, with a median of 1.21 over the past 12 months.
These figures are just a handful of the metrics value investors tend to look at, but they help show that American International Group and Allianz are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, AIG and ALIZY feels like a great value stock at the moment.