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Is Brighthouse Financial (BHF) Stock Undervalued Right Now?

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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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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 value investors might notice is Brighthouse Financial (BHF - Free Report) . BHF is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 3.82, which compares to its industry's average of 9.48. Over the past year, BHF's Forward P/E has been as high as 8 and as low as 3.54, with a median of 4.11.

We also note that BHF holds a PEG ratio of 0.35. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. BHF's PEG compares to its industry's average PEG of 0.91. BHF's PEG has been as high as 0.74 and as low as 0.30, with a median of 0.37, all within 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 popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. BHF has a P/S ratio of 0.4. This compares to its industry's average P/S of 0.72.

These are only a few of the key metrics included in Brighthouse Financial's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, BHF looks like an impressive value stock at the moment.


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