Is American Equity Investment (AEL) Stock Undervalued 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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
American Equity Investment (AEL) is a stock many investors are watching right now. AEL is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 4.99 right now. For comparison, its industry sports an average P/E of 7.56. Over the past 52 weeks, AEL's Forward P/E has been as high as 8.10 and as low as 2.34, with a median of 5.26.
Finally, investors should note that AEL has a P/CF ratio of 6.37. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 10.84. AEL's P/CF has been as high as 69.99 and as low as 1.73, with a median of 6.08, all within the past year.
These are just a handful of the figures considered in American Equity Investment'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 AEL is an impressive value stock right now.
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American Equity Investment Life Holding Company (AEL) : Free Stock Analysis Report
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