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Are Investors Undervaluing Allianz (ALIZY) Right Now?

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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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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.

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.

Another notable valuation metric for ALIZY is its P/B ratio of 1.62. 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 2.71. Over the past year, ALIZY's P/B has been as high as 1.73 and as low as 1.39, with a median of 1.57.

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. ALIZY has a P/S ratio of 0.61. This compares to its industry's average P/S of 1.01.

Investors could also keep in mind CNO Financial Group (CNO - Free Report) , an Insurance - Multi line stock with a Zacks Rank of # 1 (Strong Buy) and Value grade of A.

Additionally, CNO Financial Group has a P/B ratio of 1.37 while its industry's price-to-book ratio sits at 2.71. For CNO, this valuation metric has been as high as 2.12, as low as 1.15, with a median of 1.37 over the past year.

These are just a handful of the figures considered in Allianz and CNO Financial Group's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that ALIZY and CNO is an impressive value stock right now.


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CNO Financial Group, Inc. (CNO) - free report >>

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