Is AXA Equitable Holdings, Inc. (EQH) 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.
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.
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.
AXA Equitable Holdings, Inc. (EQH) is a stock many investors are watching right now. EQH 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 5.30 right now. For comparison, its industry sports an average P/E of 9.91. Over the past year, EQH's Forward P/E has been as high as 5.39 and as low as 3.81, with a median of 4.88.
EQH is also sporting a PEG ratio of 0.72. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. EQH's industry has an average PEG of 1.12 right now. Within the past year, EQH's PEG has been as high as 0.72 and as low as 0.33, with a median of 0.61.
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. EQH has a P/S ratio of 0.89. This compares to its industry's average P/S of 1.59.
Value investors will likely look at more than just these metrics, but the above data helps show that AXA Equitable Holdings, Inc. Is likely undervalued currently. And when considering the strength of its earnings outlook, EQH sticks out at as one of the market's strongest value stocks.
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