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Should Value Investors Buy Air Canada (ACDVF) Stock?
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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.
Air Canada (ACDVF - Free Report) is a stock many investors are watching right now. ACDVF is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock is trading with a P/E ratio of 3.94, which compares to its industry's average of 9.60. Over the last 12 months, ACDVF's Forward P/E has been as high as 19.41 and as low as 3.88, with a median of 8.74.
Investors should also note that ACDVF holds 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 industry has an average PEG of 0.44 right now. 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 frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. ACDVF has a P/S ratio of 0.3. This compares to its industry's average P/S of 0.45.
Finally, investors will want to recognize that ACDVF has a P/CF ratio of 1.60. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. ACDVF's P/CF compares to its industry's average P/CF of 6.09. ACDVF's P/CF has been as high as 9.27 and as low as -121.96, with a median of 1.80, all within the past year.
SkyWest (SKYW - Free Report) may be another strong Transportation - Airline stock to add to your shortlist. SKYW is a # 1 (Strong Buy) stock with a Value grade of A.
SkyWest is trading at a forward earnings multiple of 10.69 at the moment, with a PEG ratio of 0.89. This compares to its industry's average P/E of 9.60 and average PEG ratio of 0.44.
Over the past year, SKYW's P/E has been as high as 11,210.77, as low as -3,534.23, with a median of 10.54; its PEG ratio has been as high as 1.84, as low as 0.79, with a median of 0.20 during the same time period.
Additionally, SkyWest has a P/B ratio of 1.18 while its industry's price-to-book ratio sits at 3.47. For SKYW, this valuation metric has been as high as 1.18, as low as 0.39, with a median of 0.80 over the past year.
These are just a handful of the figures considered in Air Canada and SkyWest's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that ACDVF and SKYW is an impressive value stock right now.
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Should Value Investors Buy Air Canada (ACDVF) Stock?
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.
Air Canada (ACDVF - Free Report) is a stock many investors are watching right now. ACDVF is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock is trading with a P/E ratio of 3.94, which compares to its industry's average of 9.60. Over the last 12 months, ACDVF's Forward P/E has been as high as 19.41 and as low as 3.88, with a median of 8.74.
Investors should also note that ACDVF holds 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 industry has an average PEG of 0.44 right now. 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 frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. ACDVF has a P/S ratio of 0.3. This compares to its industry's average P/S of 0.45.
Finally, investors will want to recognize that ACDVF has a P/CF ratio of 1.60. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. ACDVF's P/CF compares to its industry's average P/CF of 6.09. ACDVF's P/CF has been as high as 9.27 and as low as -121.96, with a median of 1.80, all within the past year.
SkyWest (SKYW - Free Report) may be another strong Transportation - Airline stock to add to your shortlist. SKYW is a # 1 (Strong Buy) stock with a Value grade of A.
SkyWest is trading at a forward earnings multiple of 10.69 at the moment, with a PEG ratio of 0.89. This compares to its industry's average P/E of 9.60 and average PEG ratio of 0.44.
Over the past year, SKYW's P/E has been as high as 11,210.77, as low as -3,534.23, with a median of 10.54; its PEG ratio has been as high as 1.84, as low as 0.79, with a median of 0.20 during the same time period.
Additionally, SkyWest has a P/B ratio of 1.18 while its industry's price-to-book ratio sits at 3.47. For SKYW, this valuation metric has been as high as 1.18, as low as 0.39, with a median of 0.80 over the past year.
These are just a handful of the figures considered in Air Canada and SkyWest's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that ACDVF and SKYW is an impressive value stock right now.