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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 use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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.

Altisource Portfolio Solutions (ASPS - Free Report) is a stock many investors are watching right now. ASPS is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value.

Investors will also notice that ASPS has a PEG ratio of 1.02. 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. ASPS's industry has an average PEG of 2.27 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 0.70.

Finally, investors should note that ASPS has a P/CF ratio of 1.17. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 4.40. Over the past 52 weeks, ASPS's P/CF has been as high as 6.93 and as low as 1.05, with a median of 1.38.

These are only a few of the key metrics included in Altisource Portfolio Solutions's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, ASPS looks like an impressive value stock at the moment.


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