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Should Value Investors Buy Aegon NV (AEG) Stock?

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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.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

Aegon NV (AEG - Free Report) is a stock many investors are watching right now. AEG is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 5.39, which compares to its industry's average of 10.45. Over the past year, AEG's Forward P/E has been as high as 6.97 and as low as 4.35, with a median of 5.75.

Finally, we should also recognize that AEG has a P/CF ratio of 2.93. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 5.33. Over the past 52 weeks, AEG's P/CF has been as high as 2.93 and as low as 2.76, with a median of 2.85.

These are only a few of the key metrics included in Aegon NV'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, AEG looks like an impressive value stock at the moment.


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