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Should Value Investors Buy MetLife (MET) Stock?

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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 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 stock to keep an eye on is MetLife (MET - Free Report) . MET is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 7.93. This compares to its industry's average Forward P/E of 8.98. MET's Forward P/E has been as high as 8.99 and as low as 6.84, with a median of 8.04, all within the past year.

We also note that MET holds a PEG ratio of 0.95. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. MET's PEG compares to its industry's average PEG of 1. Over the past 52 weeks, MET's PEG has been as high as 1.05 and as low as 0.54, with a median of 0.93.

Investors should also recognize that MET has a P/B ratio of 0.70. 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 stock's P/B looks attractive against its industry's average P/B of 1.53. MET's P/B has been as high as 0.92 and as low as 0.65, with a median of 0.78, over the past year.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. MET has a P/S ratio of 0.67. This compares to its industry's average P/S of 1.08.

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.


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