Back to top

Image: Bigstock

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

Read MoreHide Full Article

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.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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 Equitable Holdings, Inc. (EQH - Free Report) . EQH is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 4.05, while its industry has an average P/E of 10.62. EQH's Forward P/E has been as high as 5.55 and as low as 4.05, with a median of 5, all within the past year.

Investors will also notice that EQH has a PEG ratio of 0.70. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. EQH's PEG compares to its industry's average PEG of 1.19. EQH's PEG has been as high as 0.76 and as low as 0.37, with a median of 0.63, all within the past year.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. EQH has a P/S ratio of 0.91. This compares to its industry's average P/S of 1.41.

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


See More Zacks Research for These Tickers


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


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

Published in