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Are Investors Undervaluing Atlas Air Worldwide Holdings (AAWW) Right Now?

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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, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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.

Atlas Air Worldwide Holdings is a stock many investors are watching right now. AAWW is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 6.22, which compares to its industry's average of 13.48. AAWW's Forward P/E has been as high as 51.04 and as low as 3.71, with a median of 6.10, all within the past year.

Finally, investors will want to recognize that AAWW has a P/CF ratio of 4.09. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. AAWW's P/CF compares to its industry's average P/CF of 11.01. AAWW's P/CF has been as high as 4.12 and as low as 2.41, with a median of 2.93, all within the past year.

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.

Air Transport Services Group sports a P/B ratio of 1.63 as well; this compares to its industry's price-to-book ratio of 7.35. In the past 52 weeks, ATSG's P/B has been as high as 1.92, as low as 1.45, with a median of 1.66.

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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