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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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader 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.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
Air Canada (ACDVF - Free Report) is a stock many investors are watching right now. ACDVF is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock has a Forward P/E ratio of 4.68. This compares to its industry's average Forward P/E of 9.78. ACDVF's Forward P/E has been as high as 20.37 and as low as -5.39, with a median of 12.40, all within the past year.
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 0.35. Over the past 52 weeks, 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 0.29. This compares to its industry's average P/S of 0.36.
Finally, we should also recognize that ACDVF has a P/CF ratio of 1.63. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. ACDVF's current P/CF looks attractive when compared to its industry's average P/CF of 5.40. Within the past 12 months, ACDVF's P/CF has been as high as 9.27 and as low as -133.81, with a median of 1.78.
If you're looking for another solid Transportation - Airline value stock, take a look at SkyWest (SKYW - Free Report) . SKYW is a # 2 (Buy) stock with a Value score of A.
Shares of SkyWest currently holds a Forward P/E ratio of 9.96, and its PEG ratio is 0.89. In comparison, its industry sports average P/E and PEG ratios of 9.78 and 0.35.
SKYW's price-to-earnings ratio has been as high as 11,210.77 and as low as -3,534.23, with a median of 14.90, while its PEG ratio has been as high as 1.84 and as low as 0.79, with a median of 0.98, all within the past year.
SkyWest also has a P/B ratio of 0.88 compared to its industry's price-to-book ratio of 2.65. Over the past year, its P/B ratio has been as high as 0.91, as low as 0.31, with a median of 0.60.
These are only a few of the key metrics included in Air Canada and SkyWest strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, ACDVF and SKYW look like an impressive value stock at the moment.
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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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader 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.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
Air Canada (ACDVF - Free Report) is a stock many investors are watching right now. ACDVF is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock has a Forward P/E ratio of 4.68. This compares to its industry's average Forward P/E of 9.78. ACDVF's Forward P/E has been as high as 20.37 and as low as -5.39, with a median of 12.40, all within the past year.
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 0.35. Over the past 52 weeks, 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 0.29. This compares to its industry's average P/S of 0.36.
Finally, we should also recognize that ACDVF has a P/CF ratio of 1.63. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. ACDVF's current P/CF looks attractive when compared to its industry's average P/CF of 5.40. Within the past 12 months, ACDVF's P/CF has been as high as 9.27 and as low as -133.81, with a median of 1.78.
If you're looking for another solid Transportation - Airline value stock, take a look at SkyWest (SKYW - Free Report) . SKYW is a # 2 (Buy) stock with a Value score of A.
Shares of SkyWest currently holds a Forward P/E ratio of 9.96, and its PEG ratio is 0.89. In comparison, its industry sports average P/E and PEG ratios of 9.78 and 0.35.
SKYW's price-to-earnings ratio has been as high as 11,210.77 and as low as -3,534.23, with a median of 14.90, while its PEG ratio has been as high as 1.84 and as low as 0.79, with a median of 0.98, all within the past year.
SkyWest also has a P/B ratio of 0.88 compared to its industry's price-to-book ratio of 2.65. Over the past year, its P/B ratio has been as high as 0.91, as low as 0.31, with a median of 0.60.
These are only a few of the key metrics included in Air Canada and SkyWest strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, ACDVF and SKYW look like an impressive value stock at the moment.