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Should Value Investors Buy American International Group (AIG) Stock?
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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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 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.
One company to watch right now is American International Group (AIG - Free Report) . AIG is currently holding a Zacks Rank #2 (Buy) and a Value grade of A.
We should also highlight that AIG has a P/B ratio of 1.07. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 2.78. Over the past year, AIG's P/B has been as high as 1.22 and as low as 0.97, with a median of 1.09.
Finally, investors will want to recognize that AIG has a P/CF ratio of 6.55. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 8.23. AIG's P/CF has been as high as 38.26 and as low as 6.49, with a median of 24.14, all within the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that American International Group is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, AIG feels like a great value stock at the moment.
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Should Value Investors Buy American International Group (AIG) Stock?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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 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.
One company to watch right now is American International Group (AIG - Free Report) . AIG is currently holding a Zacks Rank #2 (Buy) and a Value grade of A.
We should also highlight that AIG has a P/B ratio of 1.07. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 2.78. Over the past year, AIG's P/B has been as high as 1.22 and as low as 0.97, with a median of 1.09.
Finally, investors will want to recognize that AIG has a P/CF ratio of 6.55. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 8.23. AIG's P/CF has been as high as 38.26 and as low as 6.49, with a median of 24.14, all within the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that American International Group is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, AIG feels like a great value stock at the moment.