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Should Value Investors Buy Athene Holding Ltd. (ATH) Stock?

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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.

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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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.

Athene Holding Ltd. (ATH - Free Report) is a stock many investors are watching right now. ATH 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 3.49, which compares to its industry's average of 9.32. ATH's Forward P/E has been as high as 7.33 and as low as 2.19, with a median of 5.65, all within the past year.

ATH is also sporting a PEG ratio of 0.35. 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. ATH's industry has an average PEG of 0.89 right now. Over the last 12 months, ATH's PEG has been as high as 0.54 and as low as 0.22, with a median of 0.37.

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 prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. ATH has a P/S ratio of 0.31. This compares to its industry's average P/S of 0.5.

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


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