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Are Investors Undervaluing Aegon NV (AEG) Right Now?

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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.

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 Aegon NV (AEG - Free Report) . AEG is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 5.56 right now. For comparison, its industry sports an average P/E of 9.66. Over the past year, AEG's Forward P/E has been as high as 8.60 and as low as 4.35, with a median of 5.75.

Finally, investors will want to recognize that AEG has a P/CF ratio of 2.68. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. AEG's current P/CF looks attractive when compared to its industry's average P/CF of 5.33. AEG's P/CF has been as high as 3.01 and as low as 2.54, with a median of 2.86, all within the past year.

Value investors will likely look at more than just these metrics, but the above data helps show that Aegon NV is likely undervalued currently. And when considering the strength of its earnings outlook, AEG sticks out at as one of the market's strongest value stocks.


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