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Are Investors Undervaluing Air Canada (ACDVF) Right Now?

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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.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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 value investors might notice is Air Canada (ACDVF - Free Report) . ACDVF is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A.

Investors will also notice that ACDVF has a PEG ratio of 0.20. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. ACDVF's PEG compares to its industry's average PEG of 0.24. Over the past 52 weeks, ACDVF's PEG has been as high as 0.21 and as low as 0.20, with a median of 0.20.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. ACDVF has a P/S ratio of 0.41. This compares to its industry's average P/S of 0.48.

Finally, our model also underscores that ACDVF has a P/CF ratio of 3.80. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 6.60. ACDVF's P/CF has been as high as 9.27 and as low as -133.81, with a median of -8.10, all within the past year.

International Consolidated Airlines Group (ICAGY - Free Report) may be another strong Transportation - Airline stock to add to your shortlist. ICAGY is a # 2 (Buy) stock with a Value grade of A.

Shares of International Consolidated Airlines Group are currently trading at a forward earnings multiple of 5.16 and a PEG ratio of 0.11 compared to its industry's P/E and PEG ratios of 7.72 and 0.24, respectively.

ICAGY's price-to-earnings ratio has been as high as 26.44 and as low as 5.16, with a median of 9.58, while its PEG ratio has been as high as 0.14 and as low as 0.11, with a median of 0.13, all within the past year.

Furthermore, International Consolidated Airlines Group holds a P/B ratio of 1.69 and its industry's price-to-book ratio is 4.48. ICAGY's P/B has been as high as 1.95, as low as 1.09, with a median of 1.58 over the past 12 months.

These are only a few of the key metrics included in Air Canada and International Consolidated Airlines Group strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, ACDVF and ICAGY look like an impressive value stock at the moment.


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International Consolidated Airlines Group SA (ICAGY) - free report >>

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