HBefore Zacks, we focus on our proven ranking system, which emphasizes earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, which is why we are constantly reviewing the latest trends in value, growth and momentum to find strong companies for our readers.
Given these trends, value investing is clearly one of the most preferred ways to find solid stocks in any type of market. Value investors use proven metrics and fundamental analysis to find companies they believe are undervalued at their current stock price level.
Zacks developed the innovative Style Scores system to highlight stocks with specific characteristics. For example, value investors will be interested in stocks with good ratings in the “Value” category. When paired with a high Zacks ranking, “A” ratings in the Value category are some of the strongest value stocks on the market today.
One company to watch out for right now is Athene (ATH). ATH currently has a Zacks rating of # 2 (Buy) and an A for value.
Investors should also recognize that ATH has a P / N ratio of 0.72. P / B is a method of comparing the market value of a stock to its book value, which is defined as total assets minus total liabilities. ATH’s current P / B looks attractive compared to its industry average P / B of 1.29. Over the past 52 weeks, the P / B of ATH has reached 0.77 and as low as 0.39, with a median of 0.60.
Value investors also like the P / S ratio, which is calculated by simply dividing the price of a stock by the sales of the company. This is a popular metric because sales are more difficult to manipulate on an income statement, so they are often seen as a better indicator of performance. ATH has a P / S ratio of 0.57. This compares to its industry’s average P / S of 0.95.
Finally, investors should note that ATH has a P / CF ratio of 3.62. This metric takes into account a company’s operating cash flow and can be used to find undervalued stocks based on their strong cash flow outlook. This stock’s P / CF looks attractive compared to its industry average P / CF of 11.48. ATH’s P / CF has been as high as 7.05 and as low as 2.25, with a median of 3, all in the past year.
Another great life insurance stock you might want to consider is Brighthouse Financial (BHF) which is a # 2 (buy) stock with a value score of A.
In addition, Brighthouse Financial has a P / N ratio of 0.27 and the price to book ratio for its industry is 1.29. BHF’s P / B has been as high as 0.29, as low as 0.17, with a median of 0.25 in the past 12 months.
These are just a few of the numbers reflected in Athene and Brighthouse Financial’s large Value rating. Still, they help show that the title is likely undervalued right now. Add that to the strength of its earnings outlook, and we can clearly see that ATH and BHF are impressive value stocks right now.
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Athene Holding Ltd. (ATH): Free Stock Analysis Report
Brighthouse Financial, Inc. (BHF): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.