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Should Value Investors Buy Atento (ATTO) Stock?

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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

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

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.

Atento is a stock many investors are watching right now. ATTO is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 20.85. This compares to its industry's average Forward P/E of 21.08. ATTO's Forward P/E has been as high as 1,080.14 and as low as -29,111.37, with a median of 8.13, all within the past year.

Finally, our model also underscores that ATTO has a P/CF ratio of 8.90. 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 10.12. Over the past year, ATTO's P/CF has been as high as 10.75 and as low as 0.61, with a median of 2.22.

These are only a few of the key metrics included in Atento'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, ATTO looks like an impressive value stock at the moment.

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