Should Value Investors Buy Allianz (ALIZY) Stock?

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

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.

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.

Allianz (ALIZY) is a stock many investors are watching right now. ALIZY is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value.

Another notable valuation metric for ALIZY is its P/B ratio of 2.3. 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. ALIZY's current P/B looks attractive when compared to its industry's average P/B of 2.62. Over the past 12 months, ALIZY's P/B has been as high as 2.48 and as low as 1.67, with a median of 2.10.

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 preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. ALIZY has a P/S ratio of 0.81. This compares to its industry's average P/S of 1.06.

These are only a few of the key metrics included in Allianz's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, ALIZY looks like an impressive value stock at the moment.

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This article originally published on Zacks Investment Research (zacks.com).

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