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Should Value Investors Buy Altisource Portfolio Solutions (ASPS) Stock?

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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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One company value investors might notice is Altisource Portfolio Solutions (ASPS - Free Report) . ASPS is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A.

ASPS is also sporting a PEG ratio of 1.02. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. ASPS's industry has an average PEG of 2.28 right now. Over the last 12 months, ASPS's PEG has been as high as 1.02 and as low as 0.51, with a median of 0.69.

Finally, investors will want to recognize that ASPS has a P/CF ratio of 1.13. 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. This stock's P/CF looks attractive against its industry's average P/CF of 4.42. ASPS's P/CF has been as high as 6.93 and as low as 1.05, with a median of 1.43, all within the past year.

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


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