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Are Investors Undervaluing Aegon NV (AEG) 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.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One company to watch right now is Aegon NV (AEG - Free Report) . AEG is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 4.92 right now. For comparison, its industry sports an average P/E of 10.13. Over the last 12 months, AEG's Forward P/E has been as high as 6.97 and as low as 2.42, with a median of 5.23.

We also note that AEG holds a PEG ratio of 0.92. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. AEG's industry has an average PEG of 1.13 right now. Within the past year, AEG's PEG has been as high as 0.96 and as low as 0.45, with a median of 0.74.

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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