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Is Air Canada (ACDVF) Stock Undervalued Right Now?
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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, 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.
Air Canada (ACDVF - Free Report) is a stock many investors are watching right now. ACDVF is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.
We also note that ACDVF holds a PEG ratio of 0.20. 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. ACDVF's industry has an average PEG of 0.23 right now. Over the last 12 months, 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 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. ACDVF has a P/S ratio of 0.36. This compares to its industry's average P/S of 0.41.
Finally, investors should note that ACDVF has a P/CF ratio of 3.27. 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. ACDVF's P/CF compares to its industry's average P/CF of 5.81. Over the past year, ACDVF's P/CF has been as high as 9.27 and as low as -133.81, with a median of -7.67.
If you're looking for another solid Transportation - Airline value stock, take a look at International Consolidated Airlines Group (ICAGY - Free Report) . ICAGY is a # 2 (Buy) stock with a Value score of A.
International Consolidated Airlines Group is currently trading with a Forward P/E ratio of 4.13 while its PEG ratio sits at 0.08. Both of the company's metrics compare favorably to its industry's average P/E of 7.44 and average PEG ratio of 0.23.
ICAGY's Forward P/E has been as high as 26.44 and as low as 4.13, with a median of 7.44. During the same time period, its PEG ratio has been as high as 0.14, as low as 0.08, with a median of 0.12.
International Consolidated Airlines Group sports a P/B ratio of 1.69 as well; this compares to its industry's price-to-book ratio of 3.77. In the past 52 weeks, ICAGY's P/B has been as high as 1.95, as low as 1.09, with a median of 1.68.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Air Canada and International Consolidated Airlines Group are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ACDVF and ICAGY feels like a great value stock at the moment.
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Is Air Canada (ACDVF) Stock Undervalued 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.
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.
Air Canada (ACDVF - Free Report) is a stock many investors are watching right now. ACDVF is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.
We also note that ACDVF holds a PEG ratio of 0.20. 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. ACDVF's industry has an average PEG of 0.23 right now. Over the last 12 months, 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 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. ACDVF has a P/S ratio of 0.36. This compares to its industry's average P/S of 0.41.
Finally, investors should note that ACDVF has a P/CF ratio of 3.27. 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. ACDVF's P/CF compares to its industry's average P/CF of 5.81. Over the past year, ACDVF's P/CF has been as high as 9.27 and as low as -133.81, with a median of -7.67.
If you're looking for another solid Transportation - Airline value stock, take a look at International Consolidated Airlines Group (ICAGY - Free Report) . ICAGY is a # 2 (Buy) stock with a Value score of A.
International Consolidated Airlines Group is currently trading with a Forward P/E ratio of 4.13 while its PEG ratio sits at 0.08. Both of the company's metrics compare favorably to its industry's average P/E of 7.44 and average PEG ratio of 0.23.
ICAGY's Forward P/E has been as high as 26.44 and as low as 4.13, with a median of 7.44. During the same time period, its PEG ratio has been as high as 0.14, as low as 0.08, with a median of 0.12.
International Consolidated Airlines Group sports a P/B ratio of 1.69 as well; this compares to its industry's price-to-book ratio of 3.77. In the past 52 weeks, ICAGY's P/B has been as high as 1.95, as low as 1.09, with a median of 1.68.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Air Canada and International Consolidated Airlines Group are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ACDVF and ICAGY feels like a great value stock at the moment.