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Should Value Investors Buy Air Canada (ACDVF) 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.
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 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 company to watch right now is Air Canada (ACDVF - Free Report) . ACDVF is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.
Investors should also note that ACDVF holds a PEG ratio of 0.20. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. ACDVF's industry currently sports an average PEG of 0.24. Over the last 12 months, ACDVF's PEG has been as high as 0.21 and as low as 0.20, with a median of 0.20.
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. ACDVF has a P/S ratio of 0.4. This compares to its industry's average P/S of 0.45.
Finally, investors will want to recognize that ACDVF has a P/CF ratio of 3.65. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 6.27. ACDVF's P/CF has been as high as 9.27 and as low as -133.81, with a median of -7.95, all within the past year.
Another great Transportation - Airline stock you could consider is United Airlines (UAL - Free Report) , which is a # 1 (Strong Buy) stock with a Value Score of A.
United Airlines is currently trading with a Forward P/E ratio of 4.36 while its PEG ratio sits at 0.10. Both of the company's metrics compare favorably to its industry's average P/E of 7.61 and average PEG ratio of 0.24.
Over the last 12 months, UAL's P/E has been as high as 18.44, as low as 4.25, with a median of 5.88, and its PEG ratio has been as high as 0.11, as low as 0.10, with a median of 0.11.
United Airlines sports a P/B ratio of 2.14 as well; this compares to its industry's price-to-book ratio of 4.54. In the past 52 weeks, UAL's P/B has been as high as 3.24, as low as 1.76, with a median of 2.37.
These are just a handful of the figures considered in Air Canada and United Airlines'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 ACDVF and UAL is an impressive value stock right now.
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Should Value Investors Buy Air Canada (ACDVF) Stock?
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.
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 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 company to watch right now is Air Canada (ACDVF - Free Report) . ACDVF is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.
Investors should also note that ACDVF holds a PEG ratio of 0.20. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. ACDVF's industry currently sports an average PEG of 0.24. Over the last 12 months, ACDVF's PEG has been as high as 0.21 and as low as 0.20, with a median of 0.20.
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. ACDVF has a P/S ratio of 0.4. This compares to its industry's average P/S of 0.45.
Finally, investors will want to recognize that ACDVF has a P/CF ratio of 3.65. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 6.27. ACDVF's P/CF has been as high as 9.27 and as low as -133.81, with a median of -7.95, all within the past year.
Another great Transportation - Airline stock you could consider is United Airlines (UAL - Free Report) , which is a # 1 (Strong Buy) stock with a Value Score of A.
United Airlines is currently trading with a Forward P/E ratio of 4.36 while its PEG ratio sits at 0.10. Both of the company's metrics compare favorably to its industry's average P/E of 7.61 and average PEG ratio of 0.24.
Over the last 12 months, UAL's P/E has been as high as 18.44, as low as 4.25, with a median of 5.88, and its PEG ratio has been as high as 0.11, as low as 0.10, with a median of 0.11.
United Airlines sports a P/B ratio of 2.14 as well; this compares to its industry's price-to-book ratio of 4.54. In the past 52 weeks, UAL's P/B has been as high as 3.24, as low as 1.76, with a median of 2.37.
These are just a handful of the figures considered in Air Canada and United Airlines'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 ACDVF and UAL is an impressive value stock right now.