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Are Investors Undervaluing FGL Holdings (FG) Right Now?

Highs and Lows Stock Data

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

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 use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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.

FGL Holdings (FG) is a stock many investors are watching right now. FG is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 5.60 right now. For comparison, its industry sports an average P/E of 9.22. Over the past 52 weeks, FG's Forward P/E has been as high as 12.91 and as low as 4.59, with a median of 7.18.

Investors should also recognize that FG has a P/B ratio of 1.18. The P/B ratio is used to compare a stock's market value with 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 1.86. Within the past 52 weeks, FG's P/B has been as high as 1.53 and as low as 0.89, with a median of 1.15.

Value investors will likely look at more than just these metrics, but the above data helps show that FGL Holdings is likely undervalued currently. And when considering the strength of its earnings outlook, FG sticks out at as one of the market's strongest value stocks.

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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.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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