Are These Finance Stocks a Great Value Stocks Right Now?
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...
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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 Atlas (ATCO). ATCO is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock holds a P/E ratio of 7.47, while its industry has an average P/E of 13.66. Over the last 12 months, ATCO's Forward P/E has been as high as 12.69 and as low as 7.18, with a median of 10.10.
Investors should also note that ATCO holds a PEG ratio of 0.27. 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. ATCO's PEG compares to its industry's average PEG of 0.69. Within the past year, ATCO's PEG has been as high as 0.92 and as low as 0.26, with a median of 0.67.
Another notable valuation metric for ATCO is its P/B ratio of 1. 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 solid versus its industry's average P/B of 2.78. Over the past year, ATCO's P/B has been as high as 1.12 and as low as 0.67, with a median of 0.94.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. ATCO has a P/S ratio of 2.16. This compares to its industry's average P/S of 3.05.
Finally, investors will want to recognize that ATCO has a P/CF ratio of 6.93. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. ATCO's P/CF compares to its industry's average P/CF of 14.42. Over the past year, ATCO's P/CF has been as high as 7.76 and as low as 3.91, with a median of 5.90.
Grupo Aval Acciones y Valores (AVAL) may be another strong Financial - Investment Management stock to add to your shortlist. AVAL is a # 2 (Buy) stock with a Value grade of A.
Grupo Aval Acciones y Valores also has a P/B ratio of 0.50 compared to its industry's price-to-book ratio of 2.78. Over the past year, its P/B ratio has been as high as 0.73, as low as 0.49, with a median of 0.60.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Atlas and Grupo Aval Acciones y Valores are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ATCO and AVAL feels like a great value stock at the moment.
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Atlas Corp. (ATCO): Free Stock Analysis Report
Grupo Aval Acciones y Valores S.A. (AVAL): Free Stock Analysis Report
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