Should Value Investors Buy Athene Holding Ltd. (ATH) Stock?
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, 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.
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.
One stock to keep an eye on is Athene Holding Ltd. (ATH). ATH is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 5.90 right now. For comparison, its industry sports an average P/E of 9.22. ATH's Forward P/E has been as high as 9.92 and as low as 5.25, with a median of 7.86, all within the past year.
Investors will also notice that ATH has a PEG ratio of 0.42. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. ATH's industry currently sports an average PEG of 0.88. Within the past year, ATH's PEG has been as high as 0.66 and as low as 0.37, with a median of 0.52.
Another notable valuation metric for ATH is its P/B ratio of 0.96. 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. ATH's current P/B looks attractive when compared to its industry's average P/B of 1.86. ATH's P/B has been as high as 1.25 and as low as 0.84, with a median of 1.07, over the past year.
These are only a few of the key metrics included in Athene Holding Ltd.'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, ATH looks like an impressive value stock at the moment.