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Should Value Investors Buy Aflac (AFL) Stock?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

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.

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 Aflac (AFL - Free Report) . AFL is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 8.02. This compares to its industry's average Forward P/E of 10.52. Over the past 52 weeks, AFL's Forward P/E has been as high as 12.96 and as low as 5.63, with a median of 11.70.

Investors should also recognize that AFL has a P/B ratio of 0.96. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 1.15. AFL's P/B has been as high as 1.57 and as low as 0.64, with a median of 1.32, over the past year.

Finally, investors should note that AFL has a P/CF ratio of 6.11. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 8.07. Within the past 12 months, AFL's P/CF has been as high as 9.70 and as low as 4.06, with a median of 8.52.

These are just a handful of the figures considered in Aflac'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 AFL is an impressive value stock right now.


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