Back to top

Image: Bigstock

Is AXA Equitable Holdings, Inc. (EQH) Stock Undervalued Right Now?

Read MoreHide Full Article

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.

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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One stock to keep an eye on is AXA Equitable Holdings, Inc. (EQH - Free Report) . EQH is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 5.33 right now. For comparison, its industry sports an average P/E of 10.83. EQH's Forward P/E has been as high as 5.43 and as low as 4.41, with a median of 4.93, all within the past year.

EQH is also sporting a PEG ratio of 0.72. 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. EQH's industry has an average PEG of 1.21 right now. Within the past year, EQH's PEG has been as high as 0.74 and as low as 0.51, with a median of 0.62.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. EQH has a P/S ratio of 0.93. This compares to its industry's average P/S of 1.63.

These are just a handful of the figures considered in AXA Equitable Holdings, Inc.'s great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that EQH is an impressive value stock right now.


In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


Equitable Holdings, Inc. (EQH) - free report >>

Published in