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Should Value Investors Buy Aegon NV (AEG) Stock?

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

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 stock to keep an eye on is Aegon NV (AEG - Free Report) . AEG is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 5.61. This compares to its industry's average Forward P/E of 9.17. Over the past year, AEG's Forward P/E has been as high as 8.60 and as low as 5.19, with a median of 6.68.

Finally, our model also underscores that AEG has a P/CF ratio of 2.68. 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. AEG's current P/CF looks attractive when compared to its industry's average P/CF of 6.98. Over the past year, AEG's P/CF has been as high as 3.77 and as low as 2.51, with a median of 3.33.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Aegon NV is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, AEG feels like a great value stock at the moment.


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