Yahoo Finance Should Value Investors Buy Axa (AXAHY) Stock?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore 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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One stock to keep an eye on is Axa (AXAHY). AXAHY is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 8.27, which compares to its industry's average of 8.83. AXAHY's Forward P/E has been as high as 9.12 and as low as 6.47, with a median of 7.89, all within the past year.
Investors should also recognize that AXAHY has a P/B ratio of 1.37. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 2.58. AXAHY's P/B has been as high as 1.37 and as low as 0.61, with a median of 1.03, over the past year.
If you're looking for another solid Insurance - Multi line value stock, take a look at Prudential Financial (PRU). PRU is a # 2 (Buy) stock with a Value score of A.
Prudential Financial is currently trading with a Forward P/E ratio of 6.89 while its PEG ratio sits at 0.54. Both of the company's metrics compare favorably to its industry's average P/E of 8.83 and average PEG ratio of 0.75.
PRU's price-to-earnings ratio has been as high as 10.48 and as low as 6.27, with a median of 8.39, while its PEG ratio has been as high as 1.13 and as low as 0.49, with a median of 0.91, all within the past year.
Prudential Financial also has a P/B ratio of 1.81 compared to its industry's price-to-book ratio of 2.58. Over the past year, its P/B ratio has been as high as 2.39, as low as 0.77, with a median of 1.75.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Axa and Prudential Financial are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, AXAHY and PRU feels like a great value stock at the moment.
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Axa Sa (AXAHY) : Free Stock Analysis Report
Prudential Financial, Inc. (PRU) : Free Stock Analysis Report
