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Should Value Investors Buy Atlanticus (ATLC) Stock?

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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.

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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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.

Atlanticus (ATLC - Free Report) is a stock many investors are watching right now. ATLC is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 7 right now. For comparison, its industry sports an average P/E of 11.90. Over the past 52 weeks, ATLC's Forward P/E has been as high as 8.60 and as low as 4.09, with a median of 5.62.

Another valuation metric that we should highlight is ATLC's P/B ratio of 1.43. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 3.06. Over the past year, ATLC's P/B has been as high as 1.93 and as low as 0.97, with a median of 1.35.

Another great Financial - Miscellaneous Services stock you could consider is Cielo (CIOXY - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.

Shares of Cielo currently holds a Forward P/E ratio of 5.25, and its PEG ratio is 0.34. In comparison, its industry sports average P/E and PEG ratios of 11.90 and 1.35.

CIOXY's Forward P/E has been as high as 11.02 and as low as 5.23, with a median of 6.59. During the same time period, its PEG ratio has been as high as 0.41, as low as 0.14, with a median of 0.31.

Additionally, Cielo has a P/B ratio of 0.94 while its industry's price-to-book ratio sits at 3.06. For CIOXY, this valuation metric has been as high as 1.19, as low as 0.80, with a median of 0.99 over the past year.

These are only a few of the key metrics included in Atlanticus and Cielo strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, ATLC and CIOXY look like an impressive value stock at the moment.


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