Is Ping An Insurance Co. of China (PNGAY) a Great Value Stock Right Now?
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.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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.
One stock to keep an eye on is Ping An Insurance Co. of China (PNGAY). PNGAY 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 6.58 right now. For comparison, its industry sports an average P/E of 9.57. PNGAY's Forward P/E has been as high as 9.20 and as low as 3.76, with a median of 5.86, all within the past year.
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. PNGAY has a P/S ratio of 0.75. This compares to its industry's average P/S of 0.83.
Investors could also keep in mind Prudential Financial (PRU), an Insurance - Multi line stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Shares of Prudential Financial are currently trading at a forward earnings multiple of 8.04 and a PEG ratio of 0.99 compared to its industry's P/E and PEG ratios of 9.57 and 1.56, respectively.
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Ping An Insurance Co. of China Ltd. (PNGAY) : Free Stock Analysis Report
Prudential Financial, Inc. (PRU) : Free Stock Analysis Report
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