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.
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.
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 MetLife (MET - Free Report) . MET is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 8.65. This compares to its industry's average Forward P/E of 10.23. Over the past 52 weeks, MET's Forward P/E has been as high as 11.99 and as low as 8.22, with a median of 9.22.
Investors will also notice that MET has a PEG ratio of 0.69. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. MET's PEG compares to its industry's average PEG of 1.04. MET's PEG has been as high as 1.33 and as low as 0.65, with a median of 0.82, all within the past year.
We should also highlight that MET has a P/B ratio of 0.89. 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 stock's P/B looks solid versus its industry's average P/B of 1.51. MET's P/B has been as high as 1.04 and as low as 0.79, with a median of 0.86, over the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that MetLife is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, MET feels like a great value stock at the moment.