Is AGNC Investment (AGNC) a Great Value Stock Right Now?

Zacks Equity Research
·2-min read

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of 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.

One company to watch right now is AGNC Investment (AGNC). AGNC is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 6.67, while its industry has an average P/E of 9.21. Over the past year, AGNC's Forward P/E has been as high as 8.89 and as low as 4.12, with a median of 8.19.

Investors should also recognize that AGNC has a P/B ratio of 0.85. 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. This company's current P/B looks solid when compared to its industry's average P/B of 0.93. AGNC's P/B has been as high as 1.05 and as low as 0.50, with a median of 0.93, over the past year.

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


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