Should Value Investors Buy Atlas Air Worldwide Holdings (AAWW) Stock?

ATSG

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

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.

One stock to keep an eye on is Atlas Air Worldwide Holdings . AAWW is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 6.22, which compares to its industry's average of 12.79. Over the past year, AAWW's Forward P/E has been as high as 51.04 and as low as 3.71, with a median of 6.20.

Finally, investors should note that AAWW has a P/CF ratio of 4.09. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. AAWW's current P/CF looks attractive when compared to its industry's average P/CF of 10.48. Over the past year, AAWW's P/CF has been as high as 4.12 and as low as 2.41, with a median of 2.97.

Investors could also keep in mind Air Transport Services Group (ATSG - Free Report) , an Transportation - Air Freight and Cargo stock with a Zacks Rank of # 2 (Buy) and Value grade of A.

Furthermore, Air Transport Services Group holds a P/B ratio of 1.49 and its industry's price-to-book ratio is 7. ATSG's P/B has been as high as 1.92, as low as 1.45, with a median of 1.65 over the past 12 months.

These are just a handful of the figures considered in Atlas Air Worldwide Holdings and Air Transport Services Group'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 AAWW and ATSG is an impressive value stock right now.

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