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Are Investors Undervaluing Atlas (ATCO) Right Now?

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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.

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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One company value investors might notice is Atlas . ATCO is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 6.62. This compares to its industry's average Forward P/E of 9.88. ATCO's Forward P/E has been as high as 10.74 and as low as 6.15, with a median of 7.96, all within the past year.

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 prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. ATCO has a P/S ratio of 1.53. This compares to its industry's average P/S of 2.35.

Finally, our model also underscores that ATCO has a P/CF ratio of 3.44. 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 12.44. Within the past 12 months, ATCO's P/CF has been as high as 7.76 and as low as 3.37, with a median of 5.20.

If you're looking for another solid Financial - Investment Management value stock, take a look at Noah Holdings (NOAH - Free Report) . NOAH is a # 1 (Strong Buy) stock with a Value score of A.

Shares of Noah Holdings are currently trading at a forward earnings multiple of 5.42 and a PEG ratio of 0.53 compared to its industry's P/E and PEG ratios of 9.88 and 0.54, respectively.

Over the past year, NOAH's P/E has been as high as 13.82, as low as 4.17, with a median of 8.91; its PEG ratio has been as high as 0.67, as low as 0.38, with a median of 0.44 during the same time period.

Noah Holdings sports a P/B ratio of 0.86 as well; this compares to its industry's price-to-book ratio of 2.29. In the past 52 weeks, NOAH's P/B has been as high as 2.42, as low as 0.70, with a median of 1.47.

These are just a handful of the figures considered in Atlas and Noah Holdings'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 ATCO and NOAH is an impressive value stock right now.


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